KBRA Assigns Preliminary Ratings to Tricolor Auto Securitization Trust 2025-2
4 Jun 2025 | New York
KBRA assigns preliminary ratings to six classes of notes issued by Tricolor Auto Securitization Trust 2025-2 (“TAST 2025-2”), a subprime auto loan ABS transaction. TAST 2025-2 will issue six classes of notes totaling $217.180 million, where credit enhancement consists of overcollateralization, subordination of junior note classes (except for the Class F notes), a cash reserve account, and excess spread. The transaction has initial credit enhancement ranging from 51.70% for the Class A notes to 19.00% for the Class F notes. As of the April 30, 2025, statistical cut-off date, the notes are collateralized by a pool of fixed rate installment automobile loans with a non-zero weighted average FICO score of 600, an average principal balance of $20,943, and a weighted average APR of 16.90%. Approximately 62.0% of the borrowers do not have a credit score.
TAST 2025-2 represents the ninth rated ABS securitization for Tricolor Auto Acceptance, LLC (“Tricolor” or the “Company”). The Company has closed five unrated securitizations for a total of approximately $545 million as well as eight rated securitizations for a total of approximately $1.9 billion.
KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of Tricolor, as well as several business updates with the Company since that time. Operative agreements and legal opinions will be reviewed prior to closing.
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