KBRA awards preliminary ratings to Exeter Automobile Receivables Trust 2022-2 (EART 2022-2)


NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to seven categories of bonds issued by Exeter Automobile Receivables Trust 2022-2 (“EART 2022-2”), an asset-backed securitization secured by a pool of auto loans.

EART 2022-2 will issue Notes using one of two capital structures, which will be determined at the time of pricing. These include a base structure and an augmentation structure, with total initial note balances of $850,000,000 and $1,117,160,000 respectively. Each structure uses sequential priority of payments with initial credit support in the form of excess spread, subordination (except Class E Notes) and a funded reserve account at closing. Collateral pools for each structure are similar in quality and composition.

The transaction is Exeter Finance LLC’s second securitization in 2022 and its 33rd securitization since 2012.

KBRA applied its global ABS rating methodology for auto loans, as well as its global structured financial counterparty methodology and its global ESG rating methodology as part of its analysis of the transaction’s underlying collateral pools, capital structures proposed and historical data from the Exeter static pool. KBRA reviewed its operational review of Exeter Finance LLC. Operational agreements and legal opinions will be reviewed prior to closing.

Click here to see the report. To access relevant notes and documents, click here.

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Disclosures

Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine credit rating are available in the information disclosure form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.

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