NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (“KBRA”) upgrades the ratings of 2 classes and affirms the ratings of 2 classes of the First Investors Auto Owner Trust 2012-2 (“FIAOT 2012-2”), an auto loan ABS transaction, which closed on August 16, 2012. The upgrade in the ratings reflects the fact that losses have been somewhat below KBRA’s initial loss expectations to date while the credit enhancement has built for each class of notes.
The collateral in the FIAOT 2012-2 deal currently includes $120.5 million of loans, as of July 31, 2013. The collateral in the transaction has amortized from $176.8 million at closing. The current credit enhancement levels are 31.75% for the Class A-2 notes, 24.28% for the Class B notes, 12.67% for the Class C notes and 5.20% for the Class D notes. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread.
First Investors is an experienced and capable originator and servicer of subprime auto loans. The company was founded over 24 years ago and has benefited from a stable and experienced management team, which has managed its business through several economic cycles. In October 2012, First Investors was acquired by a company controlled by Aquiline Capital Partners LLC, a private equity firm that invests in the financial services sector.
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- First Investors Auto Owner Trust 2012-2 New Issue Report
- First Investors Auto Owner Trust 2012-2 Pre-Sale Report
- First Investors Auto Owner Trust 2012-2 17g-7 Disclosure Report
- U.S. Auto Loan ABS Rating Methodology