NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to seven classes of notes issued by Westlake Automobile Receivables Trust 2021-2 (“WLAKE 2021-2”), an asset-backed securitization collateralized by a pool of auto loans.
WLAKE 2021-2 will issue seven classes of notes totaling $1.3 billion. The preliminary ratings reflect initial credit enhancement of 40.15% for the Class A-1 and Class A-2 notes, through 1.50% for the Class F notes. Credit enhancement will consist of subordination (except for the Class F notes), overcollateralization, a reserve account and excess spread.
This transaction represents the second term ABS securitization in 2021 and the 25th overall for Westlake Services, LLC (“Westlake” or the “Company”). The Company has issued 24 subprime auto loan ABS securitizations since May 2010. Most of Westlake’s borrowers have experienced prior credit difficulties and generally have credit bureau scores ranging from 500 to 700. Loans are originated through independent and franchise dealers and segmented into 3 credit…
