KBRA assigns preliminary ratings to two classes of notes issued by Santander Drive Auto Receivables Trust 2024-S1 ("SDART 2024-S1"), a re-securitization of the certificates and a portion of the Class D notes issued from the Santander Drive Auto Receivables Trust 2021-4 auto loan transaction ("SDART 2021-4" or the "Underlying Securitization Transaction").

SDART 2024-S1 will be collateralized by the SDART 2021-4 certificate (the “Underlying Certificate”), and the Class D Notes transferred from Santander Consumer to the Seller and from the Seller to the Issuer on the closing date, which reflects 5.96% of the Class D Notes and which has an outstanding principal balance of $14,380,000 as of the July 2024 Underlying Payment Date (the “Underlying Class D Notes”). The Underlying Certificate, which represents the residual interest in SDART 2021-4, and the Underlying Class D Notes are collectively referred to as the “Underlying Securities”. SDART 2021-4 is collateralized by auto receivables originated and serviced by Santander Consumer USA (“SC”). SDART 2021-4 closed in October 2021 with the issuance of five classes of notes totaling $1.963 billion. As of August 7, 2024, the SDART 2021-4 Class A and Class B notes have been paid in full and the SDART 2021-4 Class C, Class D and Class E notes are the remaining notes outstanding with an outstanding balance of $451.4 million.

SDART 2024-S1 will issue three classes of notes: Class R1, Class R2 and Class RR. KBRA has assigned preliminary ratings to Class R1 and Class R2. Class RR, which represents the 5% vertical risk retention share of both the Class R1 and R2 notes, is not rated by KBRA. The Class R1 and R2 notes are repaid from cash proceeds available to the Underlying Securities. The Underlying Securities benefits from excess spread, overcollateralization, principal and interest allocable to the Underlying Class D Notes and the SDART 2021-4 cash reserve account. In addition, the Class R1 and R2 notes also benefit from the SDART 2024-S1 cash reserve account, and in the case of the Class R1, the subordination of the Class R2. Cash available from the Underlying Securitization Transaction is net of servicing fees and certain other senior fees, as well as payments of interest and principal of the SDART 2021-4 Class C, Class D and Class E notes outstanding (with the exception of payments of interest and principal to the Underlying Class D Notes).

SC was founded in 1981 in the state of Illinois and is a wholly owned subsidiary of Santander Holdings USA, Inc. (“SHUSA”). SHUSA is a wholly owned direct subsidiary of Banco Santander, S.A. (“Santander”). Headquartered in Dallas, Texas, with over 5,000 employees, SC originates prime and near-prime automobile receivables primarily by purchasing automobile installment sale contracts from dealers under a dealer agreement, which includes guidelines and procedures of the purchasing and origination process. SC also originates its auto receivables through its direct lending platform whereby applications are submitted to SC electronically and through its pass-through arrangements with third parties which direct applications to SC. In addition to its these programs, SC is a finance provider for FCA US LLC (“Stellantis”) since 2013, and in April 2022, extended the agreement through 2025. In June 2022, SC partnered with Mitsubishi Motors North America, Inc. in a preferred lender program for consumer auto loans, auto leases and dealer loans.

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 SC’s historical default and recovery data. KBRA considered its operational review of SC 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: 1005417

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