KBRA assigned preliminary ratings to five classes of notes issued by Lendbuzz Securitization Trust 2026-1 (LBZZ 2026-1), an auto loan ABS transaction.
The preliminary ratings reflect the initial credit enhancement levels ranging from 36.05% for the Class A notes to 11.50% for the Class D notes. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account funded at closing, and excess spread.
LBZZ 2026-1 is Lendbuzz Funding LLC’s first term ABS securitization in 2026 and the eleventh overall. LBZZ 2026-1 will issue five classes of notes totaling approximately $246.1 million. At closing, this transaction will consist of approximately $250.0 million receivables, with an expected collateral balance of $275.0 million after completion of the one-month prefunding period. LBZZ 2026-1 will be collateralized by a pool of retail automobile contracts made to obligors and secured by new and used automobiles, light duty trucks, and vans.
Lendbuzz is a car financing company established in 2015, headquartered in Boston, Mass., with a research division based in Tel Aviv, Israel.
