Skopos, an indirect lender, is readying its first term securitization of subprime auto loans with a credit rating.
Skopos Auto Receivables Trust 2015-2 will be backed by approximately $151.9 million of subprime auto loan receivables at closing; an additional $22.7 million of collateral will be acquired during a two-month prefunding period.
Kroll Bond Ratings has assigned a preliminary ‘AA’ ratings to $93.6 million of class A notes with initial credit enhancement of 48.50%; a ‘BBB’ rating to $33.2 million of Class B notes with 29.50% credit enhancement; a ‘BB’ rating to $18.4 million of class C notes with 19.00% credit enhancement and ‘B+’ to $8.75 million of Class C notes with 14.00% credit enhancement.
Skopos issued its inaugural, unrated ABS transaction, Skopos Auto Receivables Trust 2015-1, in April of this year. The company has been in business since 2012. It lends to subprime customers who have experienced prior credit difficulties or have limited credit histories with credit bureau scores typically ranging from 460 to 625. The company has an experienced, capable management team, many of which were previously involved in building a deep-subprime, nationwide automotive finance lender while at Drive Financial.
As of October 1, 2015, it had 133 full time employees and has purchased automobile loan contracts originated by dealers in 21 states. The company services a portfolio with an aggregate outstanding balance of $340 million.