KBRA Assigns Preliminary Ratings to DT Auto Owner Trust 2021-4

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by DT Auto Owner Trust 2021-4 (“DTAOT 2021-4”), an asset-backed securitization collateralized by a pool of sub-prime auto loans.

DTAOT 2021-4 will issue five classes of notes totaling $366.80 million, collateralized by approximately $350 million sub-prime auto loans. As of the 9/30/2021 statistical cut-off date, the auto loans are fixed rate installment loans, made to subprime borrowers. The transaction has initial credit enhancement levels ranging from 52.30% for the Class A notes, to 9.80% for the Class E notes. The target enhancement levels for the Class A notes and Class E notes are 58.50% and 16.00%, respectively.

This transaction is the fourth 2021 ABS securitization issued by DriveTime Automotive Group, Inc. (“DriveTime” or the “Company”). Inclusive of the subject transaction, the Company has issued 71 securitizations since 1996 totaling approximately $19.9 billion, of which KBRA has rated 14.

KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of DriveTime, as well as several business updates with the Company since that time. Operative agreements and legal opinions will be reviewed prior to closing.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

• Auto Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

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.

About KBRA

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 pursuant to the Temporary Registration Regime. 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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Analytical

Lawrence Wright, Director (Lead Analyst)
+1 (646) 731-1319
[email protected]

Brendan Buckley, Analyst
+1 (646) 731-1318
[email protected]

Rosemary Kelley, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2337
[email protected]

Business Development

Ted Burbage, Managing Director
+1 (646) 731-3325
[email protected]

Source: Kroll Bond Rating Agency

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