KBRA Assigns Preliminary Ratings to Lendbuzz Nonprime Finance Securitization Trust 2026-1
KBRA assigns preliminary ratings to three classes of notes issued by Lendbuzz Nonprime Finance Securitization Trust 2026-1 (“LBZZ 2026-NF1”), an auto loan ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 28.50% for the Class A notes to 10.00% for the Class C notes. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account funded at closing, and excess spread.
LBZZ 2026-NF1 represents the inaugural term ABS securitization sponsored by Lendbuzz Funding LLC (“Lendbuzz” or the “Company”) under the LBZZ-NF platform. Since 2021, the Company has issued 11 term ABS securitizations under the Lendbuzz Securitization (LBZZ) platform. Compared to LBZZ transactions, LBZZ 2026-NF1 is backed by a collateral pool more concentrated in near-prime and subprime borrowers with lower credit scores and higher loan to value. LBZZ 2026-NF1 will issue four classes of notes totaling $229.77 million. LBZZ 2026-NF1 will be collateralized by a pool of retail automobile contracts made to obligors and secured by new and used automobiles, light duty trucks, and vans.
