KBRA Assigns Preliminary Ratings to GLS Auto Receivables Issuer Trust 2024-2
May 06 2024 - 1:48PM
Business Wire
KBRA assigns preliminary ratings to five classes of notes (seven
tranches) issued by GLS Auto Receivables Issuer Trust 2024-2 (“GCAR
2024-2”), an auto loan ABS transaction.
GCAR 2024-2 represents the second term ABS securitization under
their GCAR program for Global Lending Services, LLC (“GLS” or the
“Company”) in 2024 and the 27th overall. GCAR 2024-2 will issue
five classes of notes (seven tranches) totaling $619.01 million
collateralized by a pool of retail automobile contracts, made to
subprime obligors and secured by new and used automobiles.
GLS is an auto finance company founded in 2011 and is
majority-owned by funds managed by Sound Point Capital Management,
L.P. (“Sound Point”), an alternative asset manager. Funds managed
by Sound Point and legacy funds formerly managed by BlueMountain
Capital Management have invested $135 million since GLS’ inception.
As of March 31, 2024, the Company had total assets of approximately
$6.0 billion, loss absorbing capital of approximately $528.2
million, and an aggregate managed portfolio balance of $6.5
billion.
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
transaction’s underlying collateral pool, the proposed capital
structure, and GLS’s historical static pool data. KBRA considered
its operation review of GLS, as well as periodic due diligence
calls with GLS. Operative agreements and legal opinions will be
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: 1004210
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Analytical Contacts
Brockton Bowers, Senior Analyst (Lead Analyst) +1 646-731-2418
brockton.bowers@kbra.com
Rahel Avigdor, Managing Director +1 646-731-1203
rahel.avigdor@kbra.com
Hollie Reddington, Senior Director (Rating Committee Chair) +1
646-731-3375 hollie.reddington@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com