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. Concurrently, KBRA has withdrawn its preliminary ratings on these four respective note classes, which were assigned on October 15, 2013.
“Flagship Credit Auto Trust 2013-2 Pre-Sale Report”
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 reviewed the transaction’s operative agreements and legal opinions.
For complete details on the analysis, please see KBRA’s Pre-Sale Report, “Flagship Credit Auto Trust 2013-2 Pre-Sale Report”, available at www.krollbondratings.com.
Final 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: Flagship Credit Auto Trust 2013-2 Rule 17g7 Disclosure Report.
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.