KBRA Assigns Preliminary Ratings to GLS Auto Receivables Issuer Trust 2019-3

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by GLS Auto Receivables Issuer Trust 2019-3 (GCAR 2019-3 or “the Issuer”), an auto loan ABS transaction.

GCAR 2019-3 issued four classes of notes rated totaling $374 million. The notes are backed by a pledge of assets of the issuer and the underlying trust, the assets include a certificate representing the entire beneficial ownership in the underlying trust. The assets of the underlying trust include a pool of fixed rate retail automobile contracts, made to subprime obligors, who generally have a credit bureau score ranging from 470 to 620, secured by new and used non-commercial automobiles.

The ratings reflect the initial credit enhancement levels ranging from 44.65% for the Class A notes to 7.50% for the Class D notes, which build to 56.15% and 19.00% for the Class A and Class D notes, respectively, over time. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account and excess spread.

This transaction represents Global Lending Services LLC’s (“GLS” or the “Company”) third term ABS securitization of 2019 and tenth overall. GLS is a subprime auto finance company that was founded in October 2011 and is backed by its founder Doug Duncan and BlueMountain Capital Management. GLS benefits from a capable management team that has extensive experience in the auto finance industry.

KBRA applied its Global Auto Loan ABS Rating Methodology and the Global Structured Finance Counterparty 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 also conducted an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

Preliminary Ratings Assigned: GLS Auto Receivables Issuer Trust 2019-3



Principal Balance


AA (sf)



A (sf)



BBB (sf)



BB (sf)


To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)




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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.



Jenny Ovalle, Director

(646) 731-2309


Rahel Avigdor, Director

(646) 731-1203


Pritam Patel, Senior Analyst

(646) 731-3374


Eric Neglia, Managing Director

(646) 731-2456


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