KBRA assigns preliminary ratings to four classes of notes to be issued by ACC Trust 2023-A (“ACC 2023-A”), an asset-backed securitization collateralized by a pool of auto leases.
ACC 2023-A will issue five classes of notes totaling $221.589 million. The primary assets of ACC 2023-A will consist of the i) SUBI certificate, which represents the beneficial interest in the specified closed-end leases of the titling trust, ii) the specified vehicles and related assets, including the right to receive payments under the leases, iii) the amounts realized from sales of the specified vehicles and iv) amounts in certain trust accounts, including the reserve account. The transaction has initial credit enhancement levels ranging from 64.82% for the Class A notes to 27.88% for the Class E notes, respectively. KBRA does not rate the Class E notes.
KBRA applied its General Global Rating Methodology for Asset-Backed Securities, Auto Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology as part of its analysis of static pool data and the transaction’s underlying collateral pool and stressed the proposed capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of ACC, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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- General Global Rating Methodology for Asset-Backed Securities
- Auto Loan ABS Global Rating Methodology
- Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. 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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
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Michael Espino, Associate Director (Lead Analyst)
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Rahel Avigdor, Senior Director
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Jacob Paulose, Associate Director
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Rosemary Kelley, Senior Managing Director (Rating Committee Chair)
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Ted Burbage, Managing Director
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