KBRA Assigns Preliminary Ratings to Veros Auto Receivables Trust 2024-1
17 May 2024 | New York
KBRA assigns preliminary ratings to four classes of notes issued by Veros Auto Receivables Trust 2024-1 (“VEROS 2024-1”), an auto loan ABS transaction.
This transaction represents Veros Credit LLC (“Veros” or the “Company”) first term ABS securitization of 2024 and seventh overall. VEROS 2024-1 will issue four classes of notes totaling $219.36 million. The Notes are collateralized by a pool of auto loan contracts originated on an indirect basis mainly through independent auto dealers. In the fall of 2022, the Company began originating luxury vehicle loans to high net-worth customers where the original finance amount can range from $50,000 to $720,000. VEROS 2024-1 is expected to be collateralized by approximately 5.4% of luxury vehicle loans.
Veros is a privately-owned indirect auto finance company based in California. The Company was founded in 1998 as Credit One Corporation and rebranded as Veros Credit LLC in 2010. Based on financials provided by the Company, Veros has been profitable since inception. As of April 30, 2024, Veros operates in 24 states and has a loan portfolio with an aggregate outstanding balance of $653 million.
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 Veros as well as several business updates with the Company since that time. Operative agreements and legal opinions were reviewed prior to closing.
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