KBRA Assigns ABS Ratings

By Staff Writer June 21, 2022

KBRA has assigned preliminary ratings to five classes of notes issued by U.S. Auto Funding Trust 2022-1 (USAUT 2022-1), a subprime auto loan ABS transaction.

USAUT 2022-1 will issue five classes of notes totaling $232.88 million that are collateralized by a pool of retail automobile contracts, made to subprime obligors and secured by used automobiles. Credit enhancement consists of excess spread, overcollateralization, subordination (except for the Class E Notes) and a reserve account funded at closing.

USAUT 2022-1 represents the first ABS securitization in 2022 for U.S. Auto Finance, and their fourth rated term ABS securitization since inception. The company also issued two unrated deals in September 2017 and October 2018. U.S. Auto will use the net proceeds from the issuance of the notes to pay down existing debt, fund the reserve account, and for general operating purposes.

Founded in 1992, U.S. Auto and its affiliate USASF Servicing LLC (USASF), are wholly owned subsidiaries of USASF Holdco, LLC. U.S. Auto is headquartered in Duluth, Ga., and originates through its 39 dealerships located in Georgia, South Carolina, North Carolina, Florida, Tennessee, and Alabama. U.S. Auto’s business model consists of vehicle acquisition, reconditioning, sales, underwriting, financing, loan servicing and after-sale support. The company operates a direct lending model in which it originates 100% of loans through its company-owned stores. The company is majority owned by Milestone Partners; a private equity firm founded in 1995.

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Last modified on Tuesday, 21 June 2022 02:19