KBRA Maintains Watch Downgrade Placement on Avid Automobile Receivables Trust 2021-1
24 May 2024 | New York
KBRA maintains its Watch Downgrade Placement on the Class F notes issued from Avid Automobile Receivables Trust 2021-1 (“AVID 2021-1”). The rating was previously placed on Watch Downgrade on February 26, 2024 due to deteriorating credit performance, which prevented overcollateralization (“O/C”) from reaching its target level. To date, the securities have received timely interest payments.
The table below displays the current capital structure and Watch Placement undertaken in this review.
Following the Watch Placement in February 2024, the performance for the March 2024 through May 2024 distribution dates has shown signs of improvement as delinquency and monthly net loss levels have decreased. Current delinquencies have decreased from 14.79% to 11.73% for Avid 2021-1; however, overcollateralization remains below its target amount and seasonal trends likely contributed to the aforementioned performance improvement. KBRA will continue to monitor transaction and Company performance and seek to resolve the Watch Placement over the next 90 days.
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