KBRA Assigns Preliminary Ratings to GLS Auto Receivables Issuer Trust 2025-1

KBRA assigns preliminary ratings to five classes of notes (seven tranches) issued by GLS Auto Receivables Issuer Trust 2025-1 (“GCAR 2025-1”), an auto loan ABS transaction.

GCAR 2025-1 represents the second term ABS securitization of 2025 for Global Lending Services, LLC (“GLS” or the “Company”), and the first under the GCAR program. The company has issued 30 securitizations under their GCAR program following its inaugural issuance in 2014. GCAR 2025-1 will issue five classes of notes (seven tranches) totaling $666.54 million collateralized by a pool of retail automobile contracts, made to subprime obligors and secured by new and used automobiles.

GLS is an auto finance company founded in 2011 and is majority-owned by funds managed by Sound Point Capital Management, L.P. (“Sound Point”), an alternative asset manager. Funds managed by Sound Point and legacy funds formerly managed by BlueMountain Capital Management have invested $135 million since GLS’ inception. As of December 31, 2024, the Company had total assets of approximately $7.5 billion, loss absorbing capital of approximately $646.3 million, and an aggregate managed portfolio balance of $7.7 billion.

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 GLS’s historical static pool data. KBRA considered its operation review of GLS, as well as periodic due diligence calls with GLS. Operative agreements and legal opinions will be reviewed prior to closing.

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Methodologies

• ABS: Auto Loan ABS Global Rating Methodology
• Structured Finance: 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), 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.

Doc ID: 1007886

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