Why Carvana (CVNA) Shares Are Trading Higher Thursday
Portfolio Pulse from Erica Kollmann
Carvana Co (NYSE:CVNA) shares are trading higher on Thursday after receiving positive upgrades and revisions from S&P Global Ratings. S&P raised its ratings on several Carvana-sponsored securitizations backed by prime and non-prime auto loans, and lowered its loss assumptions on seven transactions.
June 01, 2023 | 4:00 pm
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Carvana's stock is trading higher after S&P Global Ratings upgraded and revised ratings on Carvana-sponsored securitizations backed by prime and non-prime auto loans.
The positive upgrades and revisions from S&P Global Ratings indicate that Carvana has a strong ability to originate high-quality assets in its lending business. This is a result of disciplined underwriting practices and the experience of its third-party servicer. The improved ratings and lowered loss assumptions on the securitizations are likely to boost investor confidence in the company, leading to a short-term increase in the stock price.
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IMPORTANCE 80
RELEVANCE 100