American Credit Acceptance Receivables Trust 2019-1 Notes Assigned Ratings


  • American Credit Acceptance Receivables Trust 2019-1's issuance is an ABS transaction backed by subprime auto loan receivables.
  • We assigned our ratings to the class A, B, C, D, E, and F notes.
  • The ratings reflect our view of the transaction's credit support, collateral characteristics, and legal structure, among other factors.
NEW YORK (S&P Global Ratings) March 15, 2019--S&P Global Ratings today 
assigned its ratings to American Credit Acceptance Receivables Trust 2019-1's 
asset-backed notes (see list).

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

The ratings reflect: 
  • The availability of approximately 65.6%, 58.8%, 49.0%, 41.9%, 36.4%, and 33.8% credit support for the class A, B, C, D, E, and F notes, respectively, based on break-even stressed cash flow scenarios (including excess spread). These credit support levels provide coverage of approximately 2.30x, 2.05x, 1.67x, 1.35x, 1.20x, and 1.10x our 28.00%-29.00% expected net loss range for the class A, B, C, D, E, and F notes, respectively.
  • The timely interest and principal payments made to the rated notes by the assumed legal final maturity dates under our stressed cash flow modeling scenarios that we believe are appropriate for the assigned ratings.
  • The expectation that under a moderate ('BBB') stress scenario, all else being equal, our ratings on the class A, B, and C notes would not be lowered from our 'AAA (sf)', 'AA (sf)', and 'A (sf)' ratings during the first year; the rating on the class D notes would remain within two rating categories of our 'BBB (sf)' rating during the first year; and the ratings on the class E and F notes would remain within two categories of the 'BB- (sf)' and 'B (sf)' rating, respectively, in the first year, but the class E and F notes are expected to default by their legal final maturity date with approximately 70%-93% and 0% of principal repayment, respectively. These potential rating movements are within the limits specified in our credit stability criteria (see "Methodology: Credit Stability Criteria," published May 3, 2010).
  • The collateral characteristics of the subprime automobile loans securitized in this transaction.
  • The backup servicing arrangement with Wells Fargo Bank N.A. (Wells Fargo).
  • The transaction's payment and credit enhancement structures.
  • The transaction's legal structure.
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