DBRS Finalizes Provisional Ratings on AmeriCredit Automobile Receivables Trust 2019-3

DBRS, Inc. (DBRS) finalized its provisional ratings on the following classes of notes issued by AmeriCredit Automobile Receivables Trust 2019-3 (AMCAR 2019-3 or the Issuer):

-- $158,000,000 of Class A-1 at R-1 (high) (sf)
-- $200,940,000 of Class A-2-A at AAA (sf)*
-- $50,000,000 of Class A-2-B at AAA (sf)*
-- $172,610,000 of Class A-3 at AAA (sf)
-- $63,120,000 of Class B at AA (sf)
-- $78,350,000 of Class C at A (sf)
-- $77,040,000 of Class D at BBB (sf)
-- $20,460,000 of Class E at BB (sf)

*The total Class A-2 size is $250,940,000, split between Classes A-2-A and Classes A-2-B. Class A-2-B is floating rate.

The ratings are based on DBRS’s review of the following analytical considerations:

-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the ratings address the timely payment of interest on a monthly basis and principal by the legal final maturity date.
-- AmeriCredit Financial Services, Inc.’s (AmeriCredit) capabilities with regard to originations, underwriting and servicing and ownership by General Motors Company (rated BBB (high) with a Stable trend by DBRS).
-- The credit quality of the collateral and performance of AmeriCredit’s auto loan portfolio.
-- The legal structure and presence of legal opinions that will address the true sale of the assets to the Issuer, the non-consolidation of the special-purpose vehicle with AmeriCredit, that the trust has a valid first-priority security interest in the assets and the consistency with DBRS’s “Legal Criteria for U.S. Structured Finance.”

The receivables securitized in AMCAR 2019-3 will be subprime auto loan contracts secured by new and used automobiles, light-duty trucks and vans.

This transaction is structured as a public transaction offering four classes of notes: Class A (split into three sequential tranches — Classes A-1, A-2 and A-3), Class B, Class C and Class D. The Class E Notes are not publicly offered and are initially being retained by the Depositor or an affiliate thereof. Initial Class A credit enhancement of 35.20% includes a reserve account (2.00% of the initial pool balance; funded at inception and non-declining), overcollateralization (OC) of 5.75% and subordination of 27.45% of the initial pool balance. Initial Class B enhancement of 27.95% includes a 2.00% reserve account, 5.75% OC and 20.20% subordination. Initial Class C enhancement of 18.95% includes a 2.00% reserve account, 5.75% OC and 11.20% subordination. Initial Class D enhancement of 10.10% includes a 2.00% reserve account, 5.75% OC and 2.35% subordination. OC will build to a target of 14.75% of the pool balance, less the amount on deposit in the reserve account, based on excess spread available in the structure and will be subject to a floor of 0.50% of the initial pool balance.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is Rating U.S. Retail Auto Loan Securitizations, which can be found on dbrs.com under Methodologies & Criteria.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrs.com.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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