Bridgecrest Acceptance's latest securitization will sell $649.9 million in asset-backed securities (ABS) to investors collateralized by revenue from subprime auto loans.
Bridgecrest Lending Auto Securitization Trust, 2026-1, is supported by a pool of 29,036 loans, according to analysts at S&P Global Ratings, which assessed the notes. The fixed-rate notes will be issued through a series of seven tranches of class A, B, C, D and E notes, according to S&P.
Classes A2 and A3 among the senior notes hold the largest portion of the deal's note balance, with $224.50 million, according to the deal's capital structure. The A1 notes will mature on Jan. 15, 2027; tranches A2 and A3 mature on July 17, 2028 and Dec. 17, 2029, respectively, S&P said. Classes B, C and D will all mature on Nov. 17, 2031 and the class E notes have a legal final maturity date of Feb. 15, 2033.
Other elements of the deal structure include credit support levels of 62.45%, 57.13%, 47.78%, 38.39% and 34.46% on the classes A1, A2 and A3; and B, C, D and E, respectively.
Under moderate stress scenarios, 'BBB', S&P set an expected loss level of 1.37x, according to S&P.
The deal includes some structural changes, such as subordination levels of 41.05%, 32.25%, 19.45% and 6.10% on classes A, B, C and D, respectively, and all those levels increased from the previous deal, the series 2025-4 notes, the rating agency said.
Initial overcollateralization is still 15.00% of the initial collateral pool balance, and that will build to a target of 20.90%, the rating agency said.
On average, the loans have a balance of $22,385, and an original term of 70.9 months. On a weighted average (WA) basis, the loans have an annual percentage rate (APR) of 21.76%, and borrowers have a credit bureau score of 576.
S&P assigns ratings of A1+ to the A1 notes; AAA to the A2 and A3 notes; AA to the class B notes; A to the class C piece; BBB to the class D notes and BB to the class E notes.
