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KBRA Affirms and Upgrades Ratings from Octane Receivables Trust

17 Dec 2025   |   New York

Contacts

KBRA affirms its ratings on 20 classes of notes and upgrades its ratings on 18 classes of notes issued from nine Octane Receivables Trust (“OCTL”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the November 2025 distribution date (October 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its General Global Rating Methodology for Asset Backed Securities and 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 Octane Receivables Trust Comprehensive Surveillance Dashboard.

Octane Lending, Inc. (“Octane” or the “Company”) originates indirect consumer retail installment contracts through powersports and outdoor power equipment dealerships through its subsidiary, Roadrunner Financial, Inc. (“Roadrunner”). The Company began offering financing products in June 2016. Octane partners with over 60 original equipment manufacturer brands (“OEMs”) and provides financing to customers purchasing utility vehicles (“UTVs”), all-terrain vehicles (“ATVs”), recreational vehicles (“RVs”), tractors, trailers, cruisers, sports bikes, personal watercraft (“PWC”), mowers, dirt bikes, golf carts, classic bikes, trikes, scooters, snowmobiles, electric bikes, go-karts and pontoons. Octane’s customer demographic is full credit spectrum and includes prime and non-prime obligors. The Company is headquartered in New York, New York and services loans through its indirect subsidiary, Roadrunner Account Services, LLC (“RAS”), located in Irving, Texas.

Since inception, Octane has raised $292 million in equity capital from several investors, including Valar Ventures and $210 million in corporate debt. The Company currently has committed warehouse liquidity from a variety of sources, with staggered commitment maturities ranging from February 2026 to March 2029 and $805 million of undrawn capacity as of November 30, 2025.

Click here to view the report.

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

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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