Kroll Bond Rating Agency Assigns Preliminary Ratings to Flagship Credit Auto Trust 2015-2

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of Flagship Credit Auto Trust 2015-2 (“FCAT 2015-2”), a subprime auto asset-backed securities transaction.

The collateral in the FCAT 2015-2 deal will include approximately $454.5 million of loans at closing. The ratings reflect the initial credit enhancement levels ranging from 27.50% for the Class A notes to 2.50% for the Class D notes, which build to 33.25% and 8.25% for the Class A and Class E notes, respectively.

This transaction includes loans originated from both the Flagship Credit Acceptance (“FCA”) and CarFinance Capital LLC (“CarFinance”) origination channels. On January 1, 2015, Perella Weinberg Partners’ Asset Based Value Strategy (“PWP”) closed a merger of its two auto loan platforms, FCA and CarFinance. The parent company of the combined entity is FC HoldCo LLC (“Flagship”). Flagship is an experienced originator and servicer of subprime auto loans with Flagship and the former, Flagship Credit Corporation having originated and serviced subprime auto loans for over 9 years. The management team of the combined company is led by Michael Ritter who became CEO of the combined company after holding the same position at Flagship.

KBRA applied its U.S. 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 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.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, Flagship Credit Auto Trust 2015-2 Presale Report, which was published at www.kbra.com.

Preliminary Ratings Assigned: Flagship Credit Auto Trust 2015-2

      Class       Rating       Expected Initial Class Principal
A       AA(sf)       $336,360,000
B       A(sf)       $44,320,000
C       BBB(sf)       $40,230,000
D       BB(sf)       $29,090,000
           

Related Publication:

U.S. Auto Loan ABS Rating Methodology

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical:
Kroll Bond Rating Agency
Rosemary Kelley, Managing Director
(646) 731-2337
rkelley@kbra.com
or
William Carson, Director
(646) 731-2405
wcarson@kbra.com
or
Zach Lizmi, Analyst
(646) 731-2492
zlizmi@kbra.com

Contacts

Analytical:
Kroll Bond Rating Agency
Rosemary Kelley, Managing Director
(646) 731-2337
rkelley@kbra.com
or
William Carson, Director
(646) 731-2405
wcarson@kbra.com
or
Zach Lizmi, Analyst
(646) 731-2492
zlizmi@kbra.com