KBRA assigns preliminary ratings to three classes of notes issued by Lendbuzz Nonprime Finance Securitization Trust 2026-1 (“LBZZ 2026-NF1”), an auto loan ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 28.50% for the Class A notes to 10.00% for the Class C 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-NF1 represents the inaugural term ABS securitization sponsored by Lendbuzz Funding LLC (“Lendbuzz” or the “Company”) under the LBZZ-NF platform. Since 2021, the Company has issued 11 term ABS securitizations under the Lendbuzz Securitization (LBZZ) platform. Compared to LBZZ transactions, LBZZ 2026-NF1 is backed by a collateral pool more concentrated in near-prime and subprime borrowers with lower credit scores and higher loan to value. LBZZ 2026-NF1 will issue four classes of notes totaling $229.77 million. LBZZ 2026-NF1 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, MA, with a research division based in Tel Aviv, Israel. The Company’s founders launched the Company after migrating to the U.S. for graduate school and finding that they could not access basic credit products because of lack of credit history. The Company services a target consumer base that has historically been underserved from traditional lending sources such as credit unions, banks, and captive auto finance companies, despite sufficient verifiable income to support auto loan payments.

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

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Methodologies

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.

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