DBRS Morningstar Finalizes Provisional Ratings to Carvana Auto Receivables Trust 2021-N3.

ENPNewswire-September 10, 2021--DBRS Morningstar Finalizes Provisional Ratings to Carvana Auto Receivables Trust 2021-N3

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Release date- 09092021 - DBRS, Inc. (DBRS Morningstar) finalized its provisional ratings to the following classes of notes issued by Carvana Auto Receivables Trust 2021-N3 (CRVNA 2021-N3 or the Issuer).

$154,340,000 Class A-1 Notes at AAA (sf)

$57,130,000 Class A-2 Notes at AAA (sf)

$56,490,000 Class B Notes at AA (sf)

$53,340,000 Class C Notes at A (high) (sf)

$52,500,000 Class D Notes at BBB (high) (sf)

$46,200,000 Class E Notes at BB (sf)

$18,900,000 Class N Notes at BB (low) (sf)

The ratings are based on DBRS Morningstar's review of the following analytical considerations:

(1) Transaction capital structure, proposed ratings, and form and sufficiency of available credit enhancement.

Credit enhancement is in the form of overcollateralization, subordination, a fully funded reserve fund, and excess spread. Credit enhancement levels are sufficient to support the DBRS Morningstar-projected cumulative net loss (CNL) assumption under various stress scenarios.

(2) The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms in which they have invested. For this transaction, the ratings address the payment of timely interest on a monthly basis and principal by the legal final maturity date.

(3) The transaction parties' capabilities with regard to originations, underwriting, and servicing.

DBRS Morningstar performed an operational review of Carvana, LLC (Carvana) and Bridgecrest Credit Company, LLC and considers the entities to be an acceptable originator and servicer, respectively, of auto loans.

(4) The operational history of Carvana and the strength of the overall company and its management team.

Company management has considerable experience in the consumer lending business.

Carvana's platform is a technology-driven platform that focuses on providing the customer with high-level experience, selection, and value. Its website and smartphone app provide the consumer with vehicle search and discovery (currently showing more than 30,000 vehicles online); the ability to trade or sell vehicles almost instantaneously; and real-time, personalized financing. Carvana has developed underwriting policies and procedures for use across the lending platform that leverages technology where appropriate to validate customer identity...

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