KBRA Assigns Preliminary Ratings to Credit Acceptance Auto Loan Trust 2021-3

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Credit Acceptance Auto Loan Trust 2021-3 (“CAALT 2021-3”), a $350 million auto loan ABS transaction.

CAALT 2021-3 represents the third ABS securitization in 2021 for Credit Acceptance Corporation’s (“Credit Acceptance” or the “Company”). Credit Acceptance has issued 32 ABS transactions and 11 bank-sponsored commercial paper conduit transactions since 2003.

The structure and collateral for CAALT 2021-3 are generally similar with the prior CAALT transactions. CAALT 2021-3 includes a 24-month revolving period during which principal collections may be used to purchase additional collateral. The transaction has initial credit enhancement levels of 42.78% for the Class A Notes, 34.83% for the Class B Notes, and 21.62% for the Class C Notes. Credit enhancement consists of overcollateralization (“O/C”), excess spread, a reserve fund funded at closing and subordination (except for the Class C Notes).

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

Related Publications


Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining 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 disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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.


Rahel Avigdor, Senior Director (Lead Analyst)

+1 (646) 731-1203


Frank Connor, Analyst

+1 (646) 731-2408


Eric Neglia, Senior Managing Director

+1 (646) 731-2456


Rosemary Kelley, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2337


Business Development
Ted Burbage, Managing Director

+1 (646) 731-3325


error: Content is protected !!