NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (“KBRA”) announces the preliminary ratings on four classes of Flagship Credit Auto Trust 2013-2 (“FCAT 2013-2”), an auto loan ABS transaction.
The collateral in the FCAT 2013-2 deal includes approximately $187.0 million of loans, as of September 30, 2013. The transaction includes a prefunding feature that allows up to 20% of the collateral pool to be purchased up to four months after the closing date. The preliminary ratings reflect the initial credit enhancement levels of 24.79% for the Class A notes to 4.25% for the Class D notes, which build to 31.04% and 10.50% for the Class A and Class D notes, respectively. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread.
Flagship Credit Acceptance (“FCA”) is an experienced originator and servicer of subprime auto loans. FCA and its predecessor, Flagship Credit Corporation have originated and serviced subprime auto loans for over 7 years. FCA is majority owned by Perella Weinberg Partners who purchased Flagship in 2010.
KBRA’s applied its U.S. Auto Loan ABS Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and FCA’s historical static pool data. KBRA also conducted an operational assessment of FCA and will review the transaction’s operative agreements and legal opinions prior to closing.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
Preliminary Ratings Assigned: Flagship Credit Auto Trust 2013-2
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All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report: https://www.krollbondratings.com/show_report/807.
U.S. Auto Loan ABS Rating Methodology
About Kroll Bond Rating Agency
Kroll Bond Rating Agency, Inc. (www.krollbondratings.com) is registered with the SEC as a nationally recognized statistical rating organization (NRSRO). Kroll Bond Rating Agency was established in 2010 to restore trust in credit ratings by establishing new standards for assessing risk and by offering accurate, clear, and transparent ratings.