KBRA Assigns Preliminary Ratings to Veros Auto Receivables Trust 2024-1
May 17 2024 - 10:48AM
Business Wire
KBRA assigns preliminary ratings to four classes of notes issued
by Veros Auto Receivables Trust 2024-1 (“VEROS 2024-1”), an auto
loan ABS transaction.
This transaction represents Veros Credit LLC (“Veros” or the
“Company”) first term ABS securitization of 2024 and seventh
overall. VEROS 2024-1 will issue four classes of notes totaling
$219.36 million. The Notes are collateralized by a pool of auto
loan contracts originated on an indirect basis mainly through
independent auto dealers. In the fall of 2022, the Company began
originating luxury vehicle loans to high net-worth customers where
the original finance amount can range from $50,000 to $720,000.
VEROS 2024-1 is expected to be collateralized by approximately 5.4%
of luxury vehicle loans.
Veros is a privately-owned indirect auto finance company based
in California. The Company was founded in 1998 as Credit One
Corporation and rebranded as Veros Credit LLC in 2010. Based on
financials provided by the Company, Veros has been profitable since
inception. As of April 30, 2024, Veros operates in 24 states and
has a loan portfolio with an aggregate outstanding balance of $653
million.
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 Veros as well as several
business updates with the Company since that time. Operative
agreements and legal opinions were reviewed prior to closing.
To access rating 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
- 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. 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.
Doc ID: 1004323
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Analytical
Rahel Avigdor, Managing Director (Lead Analyst) +1 646-731-1203
rahel.avigdor@kbra.com
Jaykumar Shiyani, Senior Analyst +1 646-731-1362
jaykumar.shiyani@kbra.com
Hollie Reddington, Senior Director (Rating Committee Chair) +1
646-731-3375 hollie.reddington@kbra.com
Business Development
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com