KBRA publishes research – EPA greenhouse gas scores shed light on auto loan ESG ABS

NEW YORK–() – Kroll Bond Rating Agency (KBRA) Releases Environmental Protection Agency (EPA) Vehicle Greenhouse Gas (GHG) Score Study with Make / Model / Year Information Provided in asset-level disclosures for auto loans. As a result, we were able to calculate an average GHG score for each loan pool, providing an insightful data point regarding the relative environmental impact of each securitization. Here are some of the main takeaways from our analysis:

  • Securitizations issued by Asian automakers generally had a higher average GHG score (lower emissions) compared to those issued by their US counterparts, in part due to a lower mix of SUVs and funded trucks.

  • Low-income borrowers tended to finance vehicles with higher GHG scores because they were more likely to finance sedans than better-off borrowers, which is part of the reason why non-preferred ABS securitizations often scored high. higher than their blue chip counterparts.

Click on here to view the report.

About KBRA

KBRA is a full service credit rating agency registered in the US, EU and UK, and is designated to provide structured finance ratings in Canada. KBRA ratings may be used by investors for regulatory capital purposes in several jurisdictions.

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