KBRA Affirms and Upgrades Ratings from GLS Auto Select Receivables Trusts

KBRA affirms its ratings on 13 classes of notes and upgrades its rating on one class of notes issued from three GLS Auto Select Receivables Trust (“GSAR”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. The security with an upgraded rating experienced increased credit enhancement. The data used for this review is as of the March 2025 distribution date (February 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying GLS Auto Select Receivables Trust Comprehensive Surveillance Dashboard.

The loans supporting the GSAR transactions were originated by Global Lending Services LLC (“GLS” or the “Company”), a Greenville, SC based company that provides financing to franchise and independent auto dealerships throughout the U.S. GLS was founded in 2011 and is majority-owned by funds managed by Sound Point Capital Management, L.P. (“Sound Point”), an alternative asset manager. Funds managed by Sound Point and legacy funds formerly managed by BlueMountain Capital Management have invested $135 million since GLS’ inception. Based on financials provided by the Company, excluding the effects from CECL implementation, GLS has maintained consistent profitability since 2017. As of December 31, 2024, the Company had total assets of approximately $7.4 billion, loss absorbing capital of approximately $646.3 million, and an aggregate managed portfolio balance of $7.7 billion. GLS has a stable management team with experience in the auto finance industry.

The Company began originating subprime loans in 2013 and near prime loans via the “Select Program” in October 2021. The “Select Program” is a distinct product offering separate from the Company’s subprime originations and is the collateral backing the GSAR securitization program. GLS’s typical near prime customer may have experienced prior credit difficulties or have a limited credit history and generally have a FICO score ranging from 620 to 800, compared to 490 to 650 for GLS’s typical subprime customer. In addition to the GSAR platform, GLS has also issued 31 securitizations under their GLS Auto Receivables Issuer Trust (“GCAR”) platform, which are collateralized by subprime auto loans. KBRA has outstanding ratings on 12 GCAR securitizations which are not included in this review.

The related transactions are listed further below with links to the appropriate page on kbra.com which show the applicable resulting ratings.

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

Methodologies