KBRA Takes Rating Actions on U.S. Auto Funding Trusts

KBRA affirms three ratings and downgrades five ratings on notes issued by two U.S. Auto Funding Trust ("USAUT") transactions. All three affirmations were of classes at C (sf), as they remain susceptible to loss over the remaining term of the transactions, continue to miss interest payments as of the July 2024 distribution date, and are not expected to receive any additional interest payments. All five downgrades reflect ongoing deterioration in collateral credit performance, a decrease in overcollateralization, and an increased servicing fee, as described in the surveillance report. Of these downgrades, four have been lowered to CCC (sf) or below, as they are at increased risk of principal loss. KBRA has downgraded the USAUT 2022-1 Class A to BB (sf) due to the increased possibility that it will not be repaid in full by its legal final maturity date. The data used in this report is as of the July 2024 distribution date (June 2024 collection period).

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Methodologies