KBRA Assigns Preliminary Ratings to Notes Issued by Tidewater Auto Receivables Trust 2020-A

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by Tidewater Auto Receivables Trust 2020-A (“TMCAT 2020-A”), an auto loan ABS transaction.

TMCAT 2020-A will issue five classes of notes totaling $190.118 million. The transaction includes a six-month prefunding feature that allows up to $57 million or 29% of the collateral pool to be funded after closing. The ratings reflect the initial credit enhancement levels of 39.55% for the Class A notes, 30.75% for the Class B notes, 18.90% for the Class C notes, 9.45% for the Class D notes and 3.50% for the Class E notes. Credit enhancement consists of overcollateralization, subordination of junior notes, a cash reserve and excess spread. This transaction is Tidewater’s first securitization in 2020 and its ninth securitization overall.

Tidewater Finance Company is a privately held consumer finance company that was established in 1992 to originate and service retail installment contracts. Tidewater has an experienced, capable management team that has significant experience in all aspect of consumer lending. Senior members of Tidewater have diverse backgrounds, with experience in motor credit originations and underwriting, consumer risk, servicing/collections, dealer relations, marketing, and corporate finance.

KBRA applied its Global Auto Loan ABS methodology and its Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and ACA’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.

To access ratings, reports and disclosures, click here.

Ratings Assigned: Tidewater Auto Receivables Trust 2020-A

Class

 

Rating

 

Initial Principal Balance

A-1

 

K1+ (sf)

 

$32,000,000

A-2

 

AAA (sf)

 

$88,182,000

B

 

AA (sf)

 

$17,072,000

C

 

A (sf)

 

$22,988,000

D

 

BBB (sf)

 

$18,333,000

E

 

BB (sf)

 

$11,543,000

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:
Eric Neglia, Managing Director

+1 (646) 731-2456

eneglia@kbra.com

Rahel Avigdor, Director

+1 (646) 731-1203

ravigdor@kbra.com

Jenny Ovalle, Director

+1 (646) 731-2309

jovalle@kbra.com

Business Development Contact:
Ted Burbage, Managing Director

+1 (646) 731-3325

tburbage@kbra.com

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