KBRA Assigns Preliminary Ratings to Drive Auto Receivables Trust 2025-S1

KBRA assigns preliminary ratings to two classes of notes issued by Drive Auto Receivables Trust 2025-S1 ("DRIVE 2025-S1"), a re-securitization of the certificate (the "Underlying Certificate") issued from the Drive Auto Receivables Trust 2021-3 auto loan transaction ("DRIVE 2021-3" or the "Underlying Securitization Transaction").

The DRIVE 2025-S1 Class R1 and Class R2 Notes will be collateralized by the Underlying Certificate. The Underlying Certificate represents the residual interest in DRIVE 2021-3 and is backed by the difference between the DRIVE 2021-3 remaining collateral balance of $258,836,019 less the DRIVE 2021-3 Class D notes outstanding of $153,572,273 equal to $105,263,746 (the “Underlying Overcollateralization Amount”) plus amounts available in the DRIVE 2021-3 Reserve Fund (the “Underlying Reserve Account Balance”) of $15,243,820. The DRIVE 2025-S1 Class R1 and R2 Notes will also benefit from the DRIVE 2025-S1 Reserve Account which will be equal to $445,000. As of May 13, 2025, the Class R1 notes will have 45.19% enhancement and the Class R2 notes have 26.51% enhancement. The enhancement for the Class R1 and R2 notes consists of the sum of (i) overcollateralization which is the difference between the sum of the overcollateralization and the reserve account of the underlying transaction (the Underlying Certificate) of $120,507,566 minus the sum of the Class R1, Class R2, and Class RR notes ($89,000,000) equal to $31,507,566, (ii) in the case of the Class R1 notes, subordination of the Class R2 notes and (iii) the DRIVE 2025-S1 reserve account, divided by the Underlying Certificate.

DRIVE 2025-S1 will issue three classes of notes that are collateralized by cash flows from the Underlying Certificate. The collateral for DRIVE 2021-3 is a pool of mostly subprime automobile installment contracts. As of March 31, 2025, the auto receivables had an average current principal balance of $13,306, weighted average (WA) interest rate of 17.49%, and WA original and remaining term of 72 and 30 months, respectively and were made to obligors with a WA FICO score of 573. The new/used vehicle mix is 19% and 81% of the collateral balance, respectively.

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, 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1009389

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