GLS Auto Receivables Issuer Trust 2019-1 Notes Assigned Preliminary Ratings

OVERVIEW
  • GLS Auto Receivables Issuer Trust 2019-1's issuance is an ABS transaction backed by subprime auto loan receivables.
  • We assigned our preliminary ratings to the class A, B, C, and D notes.
  • The preliminary ratings reflect our view of the transaction's credit support and enhancement, among other factors.
 
NEW YORK (S&P Global Ratings) Jan. 31, 2019--S&P Global Ratings today assigned 
its preliminary ratings to GLS Auto Receivables Issuer Trust 2019-1's 
automobile receivables-backed notes series 2019-1 (see list).

The note issuance is an asset-backed securities transaction backed by subprime 
auto loan receivables.

The preliminary ratings are based on information as of Jan. 31, 2019. 
Subsequent information may result in the assignment of final ratings that 
differ from the preliminary ratings.

The preliminary ratings reflect: 
  • The availability of approximately 49.9%, 40.7%, 31.9%, and 25.8% of credit support for the class A, B, C, and D notes, respectively, based on stressed cash flow scenarios (including excess spread). These credit support levels provide coverage of approximately 2.50x, 2.00x, 1.55x, and 1.22x our 19.25%-20.25% expected cumulative net loss for the class A, B, C, and D notes, respectively.
  • The expectation that under a moderate ('BBB') stress scenario (1.55x our expected loss level), all else being equal, our rating on the class A and B notes will remain within one rating category of the assigned preliminary 'AA (sf)' and 'A (sf)' ratings and our rating on the class C notes will remain within two rating categories of the assigned preliminary 'BBB (sf)' rating. The class D notes will remain within two rating categories of the assigned preliminary 'BB- (sf)' rating during the first year but will eventually default under the 'BBB' stress scenario. These rating movements are within the limits specified by our credit stability criteria (see "Methodology: Credit Stability Criteria," published May 3, 2010).
  • Our analysis of over four years of origination static pool data and securitization performance data on Global Lending Services' (GLS') five Rule 144A securitizations.
  • The collateral characteristics of the subprime automobile loans securitized in this transaction, including the representation in the transaction documents that all contracts in the pool have made a least one payment.
  • The notes' underlying credit enhancement in the form of subordination, overcollateralization, a reserve account, and excess spread for the class A, B, C, and D notes.
  • The timely interest and principal payments made to the notes under our stressed cash flow modeling scenarios, which we believe are appropriate for the assigned preliminary ratings.
We work across the world

From London to San Francisco, to our home base in (Saint Helier) Jersey, we’re looking for extraordinary and creative scientists to help us drive the field forward.

AC Investment Inc. currently does not act as an equities executing broker or route orders containing equities securities. If AC Invest’s business model were to change and it begins routing non-directed orders in NMS securities, it will comply with the disclosure requirement of Rule 606.

77 Massachusetts Avenue Cambridge, MA 02139 617-253-1000 pr@ademcetinkaya.com