KBRA Assigns Preliminary Ratings to CPS Auto Receivables Trust 2018-D
NEW YORK--(BUSINESS WIRE)--Oct 4, 2018--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by CPS Auto Receivables Trust 2018-D (“CPSART 2018-D”), an auto loan ABS transaction.
CPS Auto Receivables Trust 2018-D (“CPSART 2018-D”) will issue five classes of notes totaling $233.73 million that are collateralized by a trust certificate backed by a pool of fixed rate retail automobile contracts, made to subprime obligors and secured by new and used automobiles, light trucks, vans and minivans.
The preliminary ratings reflect the initial credit enhancement levels of 55.15% for the Class A notes, 40.65% for the Class B notes, 27.65% for the Class C notes, 16.30% for the Class D notes and 5.60% for the Class E notes. Credit enhancement for the notes consists of the reserve account, overcollateralization, excess interest on the receivables and subordination (except for the Class E notes.)
This transaction represents the fourth term ABS securitization in 2018 and the 31 st since 2010 for Consumer Portfolio Services, Inc. (“CPS” or the “Company”). The Company issued its first securitization in 1994 and 79 transactions in total that were supported by aggregate original collateral of approximately $12.9 billion. This is the fifth securitization that KBRA has rated for CPS.
KBRA applied its Global Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and CPS’s historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and transaction documents. KBRA will review the operative agreements and legal opinions for the transaction prior to closing.
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available .
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
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CONTACT: Kroll Bond Rating Agency
Jenny Ovalle, Director
Haksun Kim, Director
Andrew Silverhardt, Senior Analyst
Rosemary Kelley, Senior Managing Director
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: Kroll Bond Rating Agency
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PUB: 10/04/2018 10:27 AM/DISC: 10/04/2018 10:27 AM