KBRA assigns preliminary ratings to five classes of notes issued by VStrong Auto Receivables Trust 2024-A ("VSTRG 2024-A"), an auto loan ABS transaction collateralized by subprime and nonprime collateral.

VSTRG 2024-A is the second 144A offering of auto loan ABS for Valley Strong Credit Union (“VSCU”). VSCU is a California state-chartered credit union, founded in 1938 and headquartered in Bakersfield, CA with 24 branches and approximately 600 employees in the Central Valley region of California.

VSTRG 2024-A will issue five classes (seven tranches) of notes totaling $331.67 million. Initial credit enhancement consists of overcollateralization (“OC”), subordination (except for the Class E notes), a reserve account funded at closing, and excess spread. Class A-1 is rated K1+ (sf), KBRA’s highest short-term credit rating, and is expected to be paid in full in less than 13 months.

The auto loans supporting the VSTRG 2024-A notes have been originated by dealers and assigned to Exeter Finance LLC (”Exeter or the “Company”) and sold to VSCU, which in turn will sell the loans to VStrong Depositor LLC, (the “Depositor”). The Depositor will sell the receivables to the issuing entity. The assets were originated in accordance with Exeter’s standard underwriting guidelines and must meet certain eligibility criteria relating to internal credit score, bureau score, vehicle mileage, loan amount and APR. Exeter will be the Servicer and Custodian for the transaction.

KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Exeter’s historical static pool data. KBRA considered its operational review of Exeter as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Methodologies

• ABS: Auto Loan ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003495

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