KBRA assigns preliminary ratings to DT Auto Owner Trust 2021-4

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five categories of notes issued by DT Auto Owner Trust 2021-4 (“DTAOT 2021-4”), an asset-backed securitization secured by a pool of subprime auto loans.

DTAOT 2021-4 will issue five classes of notes totaling $ 366.80 million, secured by approximately $ 350 million in subprime auto loans. As of 09/30/2021, statistical deadline, auto loans are installment loans at a fixed rate, granted to subprime borrowers. The transaction has initial credit enhancement levels ranging from 52.30% for Class A Notes to 9.80% for Class E Notes. Target enhancement levels for Class A Notes and Notes category E are 58.50% and 16.00% respectively.

This transaction is the fourth ABS 2021 securitization issued by DriveTime Automotive Group, Inc. (“DriveTime” or the “Company”). Including the transaction in question, the Company issued 71 securitizations since 1996 for a total of around $ 19.9 billion, of which KBRA rated 14.

KBRA applied its global auto loan ABS rating methodology, as well as its global structured finance counterparty methodology and overall ESG rating methodology as part of its analysis of static pool and sub-collateral pool data. underlying and underlined the capital structure according to its liquidity in the event of a crisis. flow assumptions. KBRA has reviewed its operational review of DriveTime, as well as several business updates with the company since then. Operational agreements and legal opinions will be reviewed prior to closing.

Click on here to view the report. To access the assessments and relevant documents, click on here.

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Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine 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 information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures can be found at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.

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