KBRA Assigns Preliminary Ratings to Carvana Auto Receivables Trust 2022-P3

NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to five categories of bonds issued by Carvana Auto Receivables Trust 2022-P3 (“CRVNA 2022-P3”), an ABS investment grade auto loan transaction.

CRVNA 2022-P3 represents ABS’s fourth securitization for Carvana, LLC (“Carvana” or the “Company”) in 2022, the eighth under its main shelf and the eighteenth overall. CRVNA 2022-P3 will issue five classes of notes (eight tranches) totaling approximately $367.3 million. The transaction is secured by $364 million in auto loans primarily to principal obligors as defined by the Company.

Carvana was launched by DriveTime Automotive Group Inc. (“DriveTime”) in 2012 as an e-commerce platform for buying used vehicles. Carvana, through its website (www.Carvana.com), offers a unique used vehicle buying experience that allows customers to purchase and finance vehicles online through an efficient and transparent process. . Originally launched in Atlanta, Georgia, Carvana has grown nationwide and now operates in 315 markets. Carvana’s business and operations fully integrate all stages of the vehicle purchase process, including vehicle acquisition, trade-in, financing and delivery.

KBRA applied its global ABS rating methodology for auto loans, as well as its global structured financial counterparty methodology and its global ESG rating methodology as part of its analysis of the transaction’s underlying collateral pool, the structure of the proposed capital and historical Carvana static pool data as well as publicly available static pool loss data for comparable auto loan originators. KBRA considered its operational review of Carvana, which was conducted at its headquarters in Tempe, AZ, as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.

Click here to see the report. To access relevant notes and documents, click here.

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Disclosures

Further information on key credit considerations, sensitivity analyzes which look at factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a factor key to the change in credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of key relevant rating assumptions, if any) used to determine credit rating are available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. Additionally, KBRA is designated as the Designated Rating Agency 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.

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