KBRA assigns preliminary ratings to seven classes of notes issued by OCCU Auto Receivables Trust 2026-1 (“OCCU 2026-1”), an asset-backed securitization collateralized by a pool of prime auto loans. OCCU 2026-1 will issue seven classes of notes totaling $307.33 million. The preliminary ratings reflect initial credit enhancement of 17.75% for the Class A notes (consisting of Class A-1, Class A-2, Class A-3, and Class A-4), through 6.35% for the Class D notes. Credit enhancement will consist of subordination (except for the Class D notes), overcollateralization, a reserve account and excess spread.

OCCU 2026-1 represents the fourth prime auto loan ABS securitization sponsored by Oregon Community Credit Union (“OCCU”) and its first issuance in 2026. As of March 31, 2026, OCCU had an outstanding serviced auto loan portfolio of approximately $2.895 billion. OCCU primarily originates auto retail installment sales contracts indirectly through franchised and independent dealerships, which represented approximately 97% of originations for the six months ended June 30, 2026. OCCU also originates auto loans directly to its members through in-branch, internet and telephonic applications. All loan underwriting and servicing activities are centralized at OCCU’s headquarters.

KBRA applied its Auto Loan ABS Global Methodology and its Global Structured Finance Counterparty Methodology as part of its analysis of the portfolio pool data, underlying collateral pool, and capital structure. KBRA also considered its operational review of OCCU. 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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