KBRA Assigns Preliminary Ratings to Westlake Automobile Receivables Trust 2026-P2

NEW YORK--(BUSINESS WIRE)-- KBRA assigns preliminary ratings to seven classes of notes issued by Westlake Automobile Receivables Trust 2026-P2 (“WLAKE 2026-P2”), an asset-backed securitization collateralized by a pool of prime auto loans. WLAKE 2026-P2 will issue seven classes of notes totaling $500.00 million. The preliminary ratings reflect initial credit enhancement of 8.50% for the Class A notes (consisting of Class A-1, Class A-2, Class A-3, and Class A-4), through 1.25% for the Class D notes. Credit enhancement will consist of subordination (except for the Class D notes), overcollateralization, a reserve account and excess spread.

This transaction represents the second prime auto loan ABS securitization in 2026 sponsored by Westlake Services, LLC (“Westlake” or the “Company”) and third overall solely sponsored by Westlake. KBRA has outstanding ratings on Westlake Automobile Receivables Trust 2023-P1 (WLAKE 2023-P1), a transaction co-sponsored by Westlake and backed by prime auto loans originated by Westlake. The Company has issued 40 subprime auto loan ABS securitizations since May 2010. As of May 31, 2026, Westlake serviced a portfolio of 1.69 million auto loans with an aggregate balance of $22.5 billion, of which 449,531 (26.6%) consist of prime auto loans with an aggregate balance of $6.1 billion (27.1%). The Company originates prime auto loans using the same network and channels as its subprime business. All loans are underwritten and serviced under the same policies and procedures.

KBRA applied its Auto Loan ABS Global Methodology and its Global Structured Finance Counterparty Methodology as part of its analysis of the portfolio pool data, underlying collateral pool, and capital structure. KBRA considered its operational reviews of Westlake, as well as periodic due diligence calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• ABS: Auto Loan ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015856

View source version on businesswire.com: https://www.businesswire.com/news/home/20260706990361/en/

Analytical Contacts

Rahel Avigdor, Managing Director (Lead Analyst)
+1 646-731-1203
[email protected]

Shivani Patel, Associate Director
+1 646-731-1483
[email protected]

Jack Kahan, Senior Managing Director, Global Head of ABS & RMBS (Rating Committee Chair)
+1 646-731-2486
[email protected]

Business Development Contact

Arielle Smelkinson, Senior Director
+1 646-731-2369
[email protected]

Source: Kroll Bond Rating Agency, LLC

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