Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by Flagship Credit Auto Trust 2019-1 (“FCAT 2019-1”), an auto loan ABS transaction.

The collateral in the FCAT 2019-1 transaction includes approximately $172 million of receivables as of the January 17, 2019 statistical cutoff date and is expected to total approximately $210 million as of the January 31, 2019 initial cutoff date. The collateral originated from both the Flagship Credit Acceptance (FCA) and CarFinance Capital LLC (CarFinance) branded origination channels and will contain approximately $262 million after completion of the prefunding period. The transaction includes a prefunding feature that allows up to 20% of the collateral pool to be funded until two months after closing. The preliminary ratings reflect the initial credit enhancement levels of 37.40% for the Class A notes, 28.90% for the Class B notes, 17.65% for the Class C notes, 8.55% for the Class D notes and 1.85% for the Class E notes. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserve account and excess spread. The transaction is the first term ABS securitization in 2019 for the Company and its twenty-sixth securitization overall.

KBRA applied its Global Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Flagship’s historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

 

Preliminary Ratings Assigned: Flagship Credit Auto Trust 2019-1

Class     Preliminary Rating     Initial Principal Balance
A     AAA (sf)     $166,780,000
B     AA (sf)     $22,290,000
C     A (sf)     $29,500,000
D     BBB (sf)     $23,860,000
E     BB (sf)     $17,570,000
       

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

  • Global Auto Loan ABS Rating Methodology

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.