KBRA has assigned preliminary ratings to three classes of notes (four tranches) issued by Lendbuzz Securitization Trust 2024-2 (LBZZ 2024-2), an auto loan ABS transaction. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.

LBZZ 2024-2 is Lendbuzz Funding LLC’s seventh ABS securitization. LBZZ 2024-2 will issue three classes of notes (four tranches) totaling $215.72 million 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, 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 a lack of credit history. Using alternative data and machine-learning algorithms to assess credit risk, Lendbuzz services a target consumer base that is typically unable to obtain financing from traditional lending.