Press Release|ABS
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KBRA Upgrades Ratings for Veros Auto Receivables Trust

13 Nov 2025   |   New York

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KBRA upgrades its ratings on seven classes of notes issued from two Veros Auto Receivables Trust (“VEROS”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised ratings. All of the securities experienced increased credit enhancement. The data used for this review is as of the October 2025 distribution date (September 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 Veros Auto Receivables Trust Comprehensive Surveillance Dashboard.

Veros Credit LLC (“Veros” or the “Company”) is a privately-owned indirect auto finance company based in California and operating in 27 states. The Company was founded in 1998 as Credit One Corporation and rebranded as Veros Credit LLC in 2010. Veros is majority owned by the Bozorgi family. Based on financials provided by the Company, Veros has been profitable since its inception. The Company has two credit facilities from two financial institutions to support its business. The facilities have approximately $195.5 million of undrawn capacity as of September 30, 2025.

Veros originates auto loan contracts on an indirect basis to subprime borrowers for the purchase of used vehicles through applications submitted primarily by independent dealers (87% independent, 13% franchised). As of September 30, 2025, Veros’ loan portfolio had an aggregate outstanding balance of $715 million and weighted average borrower non-zero FICO score of 590. Veros’ portfolio has a typical loan size ranging from $10,000 to $35,000, an original loan term of 48 – 72 months and APRs between 12% and 30%. Since the fall of 2022, the Company has also originated loans secured by luxury vehicle to high net-worth customers. As of September 30, 2025, these originations represented approximately 5% of the total loan portfolio.

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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