Veros Credit taps rated ABS market

Veros Credit is seeking to raise around $165m in its first rated ABS, comprised of geographically-concentrated and seasoned andsubprime autoloans and backed by used cars. Credit enhancement (CE) consists of subordination, excess cash, reserves, and overcollateralisation.

Initial CE is 28% for the A Notes rising to 32%. (rated A). Proceeds are to be used to refinance warehouse funding. Cumulative net loss is expected to be around 15% of the current loan balance of $174m with a weighted average coupon of over 21% Gross excess spread is around 15%.

Closing is expected in late Oct 2017

Kroll Rating Agency pre-sale