KBRA upgrades and affirms Carvana auto receivables trust ratings

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KBRA upgrades Carvana trust ratings

Highlights

Kroll Bond Rating Agency upgraded and affirmed Carvana Auto Receivables Trust ratings in April 2026 due to sufficient and increased credit enhancement.
Servicing for Carvana deals is performed by Bridgecrest Credit Company, managing a $28.4 billion servicing portfolio as of December 31, 2025.
Carvana reported $4.6 billion in cash and available borrowing capacity in Q1 2026, including a $1.5 billion inventory line maturing in April 2027 and $3.6 billion in receivables financing.

April 2026 review and rating actions

As reported by Kroll Bond Rating Agency, the rating agency says existing credit enhancement is sufficient to support the revised and affirmed ratings on the Carvana Auto Receivables Trust notes. It says all securities that received upgrades showed higher levels of credit enhancement during the review period.

KBRA says it based the surveillance review on the March 2026 collection period and the April 2026 distribution date. In its analysis, it applied its Auto Loan ABS Global Rating Methodology and Global Structured Finance Counterparty Methodology, while also reviewing collateral performance to date and estimating remaining losses for the transactions.

The agency says related deal and tranche performance information is available through its Carvana Auto Receivables Trust Comprehensive Surveillance Dashboard. The transactions are backed by loans originated by Carvana, LLC, the online used-vehicle retailer and finance platform.

Carvana funding capacity and servicing profile

Carvana operates in more than 300 U.S. markets and handles trade-ins, financing and delivery through its eCommerce platform. The company has completed 40 securitizations to date, including 14 deals under its non-prime shelf.

Servicing for the transactions is conducted by Bridgecrest Credit Company, LLC, a DriveTime affiliate that manages a servicing portfolio of about $28.4 billion as of December 31, 2025. Carvana also uses proprietary underwriting and verification models including CarvanaScore, DealScore and FraudScore.

As of the first quarter of 2026, Carvana reported $4.6 billion in cash and available borrowing capacity from short-term revolving credit facilities. Those facilities include a $1.5 billion inventory line maturing in April 2027 and $3.6 billion of total capacity for receivables financing from six bank lending partners, while separate loan purchase agreements signed in October 2025 and December 2025 provide additional receivables purchase capacity through 2027.

Our earlier coverage of EnQuest PLC’s refinancing bond deal explained that the company issued USD675 million of senior unsecured notes due 2031 and received a final B+ rating, with proceeds aimed at repaying existing debt while keeping part of the cash on the balance sheet. We also outlined the main credit considerations cited in the rating rationale, including EnQuest’s North Sea exposure, cost profile and decommissioning obligations offset by moderate leverage, liquidity and growing geographic diversification.

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