NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned an issuer rating of BBB- with a stable outlook to Westlake Financial Services (“Westlake” or “the Company”), a Southern California-based auto lender focusing on the acquisition and servicing of subprime, near-prime and prime automotive loans. Westlake is a fully owned-subsidiary of the Hankey Group, along with six other subsidiaries, including Knight Insurance Group, Hankey Investment Group, HFC Acceptance, Midway Car Rental, Nowcom Corporation, and North Hollywood Toyota. The Company is led by Don Hankey, founder of the Hankey Group, who carries more than 40 years of experience at Westlake.
The rating reflects the Company’s established history in subprime auto lending, strong profitability metrics, broad geographic footprint, appropriate credit metrics and a seasoned management team led by Don Hankey. These strengths are balanced by the inherent risks associated with subprime auto lending, operational risks related to rapid expansion, high level of asset encumbrance, relatively weak asset quality metrics, and some key man risk.
The rating was assigned using KBRA’s Finance Company Rating Methodology, published April 1, 2013.
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KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
