Morningstar DBRS Takes Credit Rating Actions on Six Westlake Automobile Receivables Trust Transactions

DBRS, Inc. (Morningstar DBRS) upgraded nine credit ratings and confirmed twenty-nine credit ratings from six Westlake Automobile Receivables Trust transactions as detailed in the summary chart below.

The credit rating actions are based on the following analytical considerations:

-- For Westlake Automobile Receivables Trust 2021-3, Westlake Automobile Receivables Trust 2022-2, Westlake Automobile Receivables Trust 2023-1, and Westlake Automobile Receivables Trust 2023-3, although losses are tracking above the Morningstar DBRS initial base-case cumulative net loss (CNL) expectations, the current level of hard credit enhancement (CE) and estimated excess spread are sufficient to support the Morningstar DBRS projected remaining CNL assumptions at a multiples of coverage commensurate with the credit ratings.

-- Westlake Automobile Receivables Trust 2022-2 has amortized to a pool factor of 24.04% and has a current CNL to date of 15.51%. Current CNL is tracking above Morningstar DBRS' initial base-case loss expectation of 10.10%. Consequently, the revised base-case loss expectation was increased to 18.75%. As of the June 2025 payment date, the current overcollateralization amount is 0.00% relative to the target of 4.75% of the outstanding receivables balance. Additionally, the transaction structure includes a fully funded non-declining reserve account of 1.00% of the initial aggregate pool balance. As of the June 2025 payment date, as a result of the weaker than expected collateral performance, a capital contribution amount of $30,000,000 was made to the reserve account. Consequently, the end of period reserve account balance is $43,432,651.24 as of the current payment date compared to $15,214,633.92 as of the previous payment date.

-- For Westlake Automobile Receivables Trust 2024-2 and Westlake Automobile Receivables Trust 2025-1, losses are tracking either in line with or below the Morningstar DBRS initial base-case CNL expectations. The current level of hard CE and estimated excess spread are sufficient to support the Morningstar DBRS projected remaining CNL assumptions at multiples of coverage commensurate with the credit ratings.

-- The transaction capital structures and form and sufficiency of available CE.

-- The transaction parties' capabilities with regard to originating, underwriting, and servicing.

-- The transaction assumptions consider Morningstar DBRS' baseline macroeconomic scenarios for rated sovereign economies, available in its commentary, "Baseline Macroeconomic Scenarios for Rated Sovereigns March 2025 Update," published on March 26, 2025. These baseline macroeconomic scenarios replace Morningstar DBRS' moderate and adverse coronavirus pandemic scenarios, which were first published in April 2020.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025) https://dbrs.morningstar.com/research/454196.

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

The principal methodology applicable to the credit ratings is Morningstar DBRS Master U.S. ABS Surveillance (June 17, 2025) https://dbrs.morningstar.com/research/456340.

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit ratings were initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for these credit rating actions.

Morningstar DBRS had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with these credit rating actions.

These are solicited credit ratings.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

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

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA
Tel. +1 212 806-3277

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- Operational Risk Assessment for U.S. ABS Originators and Servicers (March 26, 2025)
https://dbrs.morningstar.com/research/450709

-- Legal Criteria for U.S. Structured Finance (December 03, 2024)
https://dbrs.morningstar.com/research/444064

-- Interest Rate Stresses for U.S. Structured Finance Transactions (March 27, 2025)
https://dbrs.morningstar.com/research/450750

-- Rating U.S. Structured Finance Transactions (March 10, 2025)
https://dbrs.morningstar.com/research/449616

-- Rating U.S. Retail Auto Loan Securitizations (May 15, 2025)
https://dbrs.morningstar.com/research/454100

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