Press Release|ABS
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KBRA Upgrades and Affirms Ratings for American Credit Acceptance Receivables Trusts

30 Sep 2025   |   New York

Contacts

KBRA upgrades its rating on 12 classes of notes and affirms its ratings on six classes of notes issued from six American Credit Acceptance Receivables Trust (“ACAR”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the September 2025 distribution date (August 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying American Credit Acceptance Receivables Trust Comprehensive Surveillance Dashboard. ACAR 2025-2 and ACAR 2025-3 were are not included in this review as they are less than six months seasoned.

The loans supporting the ACAR transactions were originated by American Credit Acceptance, LLC (“ACA” or the “Company”). ACA is a subprime auto finance company that was established in 2007 with the purchase of Cornerstone Acceptance Corporation from Sonic Automotive Inc. ACA is majority-owned by George D. Johnson, Jr. and affiliated trusts (79.4% total ownership interest). The Company’s minority investors have a 14.2% ownership interest, while ACA management holds the remaining 6.4% ownership interest in the Company. The Company has issued 52 securitizations since 2011 for a total amount of approximately $16.5 billion

ACA is headquartered in Spartanburg, South Carolina, has approximately 1,440 employees (ACA domestic and near shore third-party service providers) and works with approximately 6,100 dealerships. It has a serviced loan portfolio of approximately $6.5 billion as of August 31, 2025. As of Q2 2025, the majority (95%) of the ACA’s assets under management (“AUM”) were originated via point of sale. The remaining AUM is comprised of lines of credit to auto dealers, not included in any current or future planned securitizations. Based on financials provided by the Company, ACA has been profitable since 2009.

ACA originates loans through two marketing platforms, “Tier 1” and “Tier 2”. Tier 1 program focuses on purchasing contracts from CarMax through an application sourcing arrangement that matches ACA’s target customers’ credit profile. The contracts are underwritten using ACA’s underwriting standards. Tier 2 program focuses on purchasing loans from franchised and independent auto dealers and motorcycle dealers.

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

Methodologies

Disclosures

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), one of the major credit rating agencies (CRA), is a full-service CRA 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. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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