DBRS Morningstar Takes Rating Actions on CIG Auto Receivables Trust 2019-1
DBRS, Inc. (DBRS Morningstar) confirmed or upgraded its ratings on the following classes of securities included in CIG Auto Receivables Trust 2019-1:
— Class A Notes, upgraded to AAA (sf)
— Class B Notes, upgraded to AA (sf)
— Class C Notes, upgraded to A (sf)
— Class D Notes, confirmed at BB (sf)
The rating actions are based on the following analytical considerations:
— The transaction assumptions consider DBRS Morningstar’s set of macroeconomic scenarios for select economies related to the Coronavirus Disease (COVID-19), available in its commentary “Global Macroeconomic Scenarios: September Update,” published on September 10, 2020. DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which have been regularly updated. The scenarios were last updated on September 10, 2020 and are reflected in DBRS Morningstar’s rating analysis.
— The assumptions consider the moderate macroeconomic scenario outlined in the commentary, with the moderate scenario serving as the primary anchor for current ratings. The moderate scenario remains predicated on a more rapid return of confidence and a steady recovery heading into 2021. Observed performance during the 2008–09 financial crisis and the possible impact from stimulus were also considered in the assumptions.
— Transaction’s capital structure, and form and sufficiency of available credit enhancement. The current level of hard credit enhancement and estimated excess spread are sufficient to support the DBRS Morningstar-projected remaining cumulative net loss (CNL) (including an adjustment for the moderate scenario) assumption at a multiple of coverage commensurate with the ratings above.
— The collateral performance to date and DBRS Morningstar’s assessment of future performance, including upward revisions to the expected CNL assumptions consistent with the expected unemployment levels in the moderate scenario.
— The transaction parties’ capabilities with regard to origination, underwriting, and servicing.
|Issuer||Debt Rated||Rating Action||Rating||Trend||Latest Event|
|CIG Auto Receivables Trust 2019-1||Class A Notes||Upgraded||AAA (sf)||--||November 10, 2020|
|CIG Auto Receivables Trust 2019-1||Class B Notes||Upgraded||AA (sf)||--||November 10, 2020|
|CIG Auto Receivables Trust 2019-1||Class C Notes||Upgraded||A (sf)||--||November 10, 2020|
|CIG Auto Receivables Trust 2019-1||Class D Notes||Confirmed||BB (sf)||--||November 10, 2020|
CIG Auto Receivables Trust 2020-1– CIG Financials’ third CIGAR issuance
Summary CIG Auto Receivables Trust 2020-1 (CIGAR 2020-1) is the third securitization under the CIGAR platform of non-prime-quality1 retail installment auto loan contracts originated or acquired and serviced by CIG Financial, LLC (CIG). Key credit strengths of the transaction include CIG’s strong managed portfolio performance, the improved seasoning relative to the prior transaction and the absence of prefunding. Credit challenges include an unrated and small servicer and CIG’s limited prior securitization experience.
Moody’s ratings Classes Rating Amount (millions) % of Assets Legal final maturity Coupon Reserve fund Total initial hard CE*
|Class||Rating||Amount of Securities|