KBRA upgrades, affirms GLS Auto Select receivables trust ratings

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KBRA upgrades GLS Auto ratings

Highlights

KBRA upgrades ratings on two classes and affirms ratings on 14 classes from four GLS Auto Select Receivables Trust transactions, citing sufficient credit enhancement.
The upgraded classes benefited from increased credit enhancement and timely interest payments, with KBRA applying its Auto Loan ABS Global Rating and Structured Finance Counterparty methodologies.
As of March 31, 2026, GLS maintains $12.0 billion in total assets and $114.9 million in net income, with strong profitability since 2017 and a shift toward near prime borrowers.

Rating actions and review basis

As reported by Kroll Bond Rating Agency, KBRA affirms ratings on 14 classes of notes and upgrades ratings on two classes issued from four GLS Auto Select Receivables Trust transactions, saying current credit enhancement is sufficient to support the revised and affirmed ratings.

KBRA says the securities with upgraded ratings all show increased credit enhancement, and that the notes have received timely interest payments to date. In its review, the agency applies its Auto Loan ABS Global Rating Methodology and its Global Structured Finance Counterparty Methodology, while also assessing collateral performance and projected remaining losses for the transactions.

The agency says related deal and tranche performance information is available through the accompanying GLS Auto Select Receivables Trust Comprehensive Surveillance Dashboard.

GLS platform and sector implications

The loans backing the GSAR transactions are originated by Global Lending Services LLC, a Greenville, South Carolina-based auto finance company serving franchise and independent auto dealerships across the U.S. GLS begins subprime loan originations in 2013 and launches near prime lending through its Select Program in October 2021, with that program now serving as the collateral base for the GSAR securitization platform.

GLS says its current management team remains in place after affiliates of Sixth Street Partners LLC acquire the company on February 27, 2026. Based on financial information provided by GLS, the company has maintained consistent profitability since 2017; as of March 31, 2026, it has about $12.0 billion in total assets and net income of $114.9 million.

The Select Program targets near prime borrowers, a customer segment GLS describes as borrowers with prior credit difficulties or limited credit history. The company says these customers generally have FICO scores ranging from 620 to 810, compared with 490 to 650 for its typical subprime customer, highlighting a differentiated credit profile within the auto ABS market.

Our earlier article on KBRA’s rating affirmation for Lloyd’s of London and Lloyd’s Insurance Company S.A. explained that the stable outlook was underpinned by strong capitalization, sound liquidity, a robust reserve position, and policyholder protections within Lloyd’s capital framework. We also highlighted the main constraints KBRA flagged, including catastrophe and geopolitical exposure, mark-to-market investment volatility, and execution risks tied to the Advance and Protect modernization strategy.

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