Kroll Bond Rating Agency Assigns Preliminary Ratings to GLS Auto Receivables Trust 2016-1

Kroll Bond Rating Agency (“KBRA”) assigns preliminary ratings to four classes of notes issued by GLS Auto Receivables Trust 2016-1 (“GCAR 2016-1”), an auto loan ABS transaction.

GCAR 2016-1 is collateralized by approximately $206.17 million of subprime auto loan receivables as of March 31, 2016. The preliminary ratings reflect the initial credit enhancement levels ranging from 44.00% for the Class A notes to 10.00% for the Class E notes, which build to 48.00% and 14.00% for the Class A and Class E notes, respectively, over time. The Class E notes are not rated. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account and excess spread.

This transaction represents Global Lending Services LLC’s (“GLS” or the “Company”) first term ABS securitization of 2016 and third overall. GLS’s inaugural securitization was a private, unrated term securitization that closed in 2014 and its second securitization closed in 2015 was rated by KBRA. GLS is a subprime auto finance company that was founded in October 2011 and is backed by its founder Doug Duncan and BlueMountain Capital Management. GLS benefits from a capable management team that has extensive experience in the auto finance industry.

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 GLS’s historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, 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.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, GLS Auto Receivables Trust 2016-1 Presale Report, which was published today at www.kbra.com

Preliminary Ratings Assigned: GLS Auto Receivables Trust 2016-1

Related Publications:

U.S. Auto Loan ABS Rating Methodology

About Kroll Bond Rating Agency

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).

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