Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to eight classes of notes issued by Westlake Automobile Receivables Trust 2020-3 (“WLAKE 2020-3”), a $1.0 billion auto loan ABS transaction. The preliminary ratings reflect initial credit enhancement level of 40.75% for the Class A-1 and Class A-2 notes, through 5.00% for the Class F notes. Credit enhancement will consist of subordination (except for the Class F notes), overcollateralization, a reserve account and excess spread.
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. As of the statistical cutoff date, borrowers in WLAKE 2020-3 have a weighted average APR and weighted average FICO score of 19.14% and 603, respectively. The collateral pool has a weighted average original term of 61 months and a weighted average