Market Overview

KBRA Assigns Preliminary Ratings to Notes Issued by Westlake Automobile Receivables Trust 2018-3


Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to eight
classes of notes issued by Westlake Automobile Receivables Trust 2018-3
(WLAKE 2018-3), an auto loan ABS transaction.

The notes are collateralized by a pool of fixed rate retail automobile
contracts, made to subprime, near prime and prime obligors and secured
by new and used automobiles, sport utility vehicles, light duty trucks
and vans. The preliminary ratings reflect the initial credit enhancement
levels of 43.25% for the Class A-1 and A-2 notes, 34.65% for the Class B
notes, 23.75% for the Class C notes, 13.55% for the Class D notes, 9.25%
for the Class E notes, and 3.75% for the Class F notes. Credit
enhancement consists of overcollateralization, subordination of junior
notes, cash reserves and excess spread. This transaction is Westlake's
third securitization of 2018 and its 17th securitization

Westlake specializes in the acquisition and servicing of subprime,
near-prime, and prime automobile retail installment contracts. The
company was founded was founded in 1978 and has benefitted from a stable
and experienced management team, which has managed its business through
several economic cycles.

KBRA applied its Auto Loan ABS methodology as part of its analysis of
the transaction's underlying collateral pool, the proposed capital
structure and Westlake'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.

For complete details on the analysis, please see KBRA's presale report, Westlake
Automobile Receivables Trust 2018-3 Presale Report
, which was
published today at


Preliminary Ratings Assigned: Westlake Automobile Receivables
Trust 2018-3

Class     Preliminary Rating     Initial Principal Balance
A-1     K1+ (sf)     $172,500,000
A-2-A*     AAA (sf)     $211,790,000
A-2-B*     AAA (sf)     $90,770,000
B     AA+ (sf)     $70,750,000
C     A+ (sf)     $89,670,000
D     BBB+ (sf)     $83,900,000
E     BB+ (sf)     $35,380,000
F     B+ (sf)     $45,240,000

*Class A-2 will be split fix/floating. For rating purposes, KBRA assumes
30% of the A-2 will be issued as uncapped floating-rate.

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC Rule 17g-7, to provide a description of a transaction's
representations, warranties and enforcement mechanisms that are
available to investors when issuing credit ratings. KBRA's disclosure
for this transaction can be found in the report available here.

Related Publications: (available


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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, is 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.

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