KBRA assigns preliminary ratings to Flagship Credit Auto Trust 2021-2
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NEW YORK – (BUSINESS WIRE) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by Flagship Credit Auto Trust 2021-2 (“FCAT 2021-2”), guaranteed asset-backed securitization by a pool of auto loans.
FCAT 2021-2 will issue five classes of notes totaling $ 362.71. FCAT 2021-2 represents the second term of ABS securitization in 2021 for FC HoldCo LLC. The underlying FCAT 2021-2 loans were created by Flagship Credit Acceptance LLC (“Flagship” or the “Company”) and CarFinance Capital LLC (“CarFinance”) and are managed by Flagship. The preliminary ratings reflect the initial credit enhancement levels of 33.80% for Class A Notes, 24.90% for Class B Notes, 13.60% for Class C Notes, 6.85% for Class D Notes and 2.85% for Class E Notes. Credit Enhancement consists of overcollateralisation, subordination (except for Class E Notes), a funded reserve account at closing and a excess gap.
KBRA applied its global ABS auto loan rating methodology and global structured finance counterparty methodology as part of its analysis of portfolio pool, underlying collateral pool and capital structure data. KBRA took into account its operational Flagship reviews, as well as its periodic due diligence discussions with the Company. Operational agreements and legal opinions will be reviewed prior to closing.
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Disclosures
Further information on key credit considerations, sensitivity analyzes that take into account the factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key driver of change in credit rating or rating outlook) can be found in the comprehensive rating report mentioned above.
A description of all substantially significant sources that were used in preparing the credit rating and information on the methodology (s) (including significant models and sensitivity analyzes of key relevant rating assumptions, where applicable applicable) used to determine the credit rating are available in the information disclosure form (s) located here.
Information on the meaning of each rating category can be found here.
Additional information relating to this rating action is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and information is available at: www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as CRA with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is designated as a designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.
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Analytic
William Carson, Senior Director (Senior Analyst)
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Michael Polvere, partner
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Eric Neglia, Chief Executive Officer (Chairman of the Rating Committee)
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Business development
Ted Burbage, Managing Director
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Source: Kroll Bond Rating Agency