NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (“KBRA”) announces the preliminary ratings to four classes of DT Auto Owner Trust 2013-2 (“DTAOT 2013-2”), a subprime auto asset-backed securities transaction.
DTAOT 2013-2 is collateralized by approximately $300.0 million of subprime auto loan receivables. The preliminary ratings reflect the initial credit enhancement levels ranging from 64.15% for the Class A notes to 24.20% for the Class D notes, which build to 68.40% and 28.45% for the Class A and Class D notes, respectively.
DriveTime Automotive Group, Inc. (“DriveTime”) has issued 46 securitizations since 1996, including two securitizations in 2012 and three in 2011. DTAOT 2013-2 represents DriveTime’s second securitization of 2013. As of June 30, 2013, DriveTime owns and operates 104 “DriveTime” branded car dealerships across 19 states.
KBRA applied its U.S. Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and DriveTime’s historical static pool data. KBRA also conducted an operational assessment of DriveTime, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.
Preliminary Ratings Assigned: DT Auto Owner Trust 2013-2
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All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report: https://www.krollbondratings.com/show_report/728.
U.S. Auto Loan ABS Rating Methodology
About Kroll Bond Rating Agency
KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (“NRSRO”). In addition, KBRA is recognized by the National Association of Insurance Commissioners (“NAIC”) as a Credit Rating Provider (“CRP”).