KBRA assigns preliminary ratings to five classes of notes totaling to $225.020 million issued by SAFCO Auto Receivables Trust 2024-1 (“SAFCO 2024-1” or the “Issuer”), a subprime auto loan ABS transaction. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.

SAFCO 2024-1 is the second ABS securitization for Southern Auto Finance Company, LLC (“SAFCO” or the “Company”). The Company issued their inaugural ABS securitization in November 2022. SAFCO is an indirect auto finance company founded in 1990 and headquartered in Pompano Beach, Florida. SAFCO specializes in auto financing for first-time buyers, as well as consumers seeking to rebuild credit and those with hard to verify incomes.

KBRA applied its Auto Loan ABS Global Rating Methodology as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure, and SAFCO’s historical static pool data. KBRA considered its operational review of SAFCO as well as periodic due diligence calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Related Publications

• Auto Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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) 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. 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.

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