KBRA Assigns Preliminary Ratings to First Investors Auto Owner Trust 2019-2
NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six classes of notes issued by First Investors Auto Owner Trust 2019-2 (FIAOT 2019-2), an auto loan ABS transaction.
FIAOT 2019-2 contains approximately $179.3 million of receivables as of September 30, 2019 out of an expected $214.3 million after completion of a $35 million prefunding period which ends December 31, 2019. The preliminary ratings reflect the initial credit enhancement levels of 31.10% for the Class A notes, 23.80% for the Class B notes, 14.30% for the Class C notes, 7.60% for the Class D notes, 4.15% for the Class E notes, and 1.50% for the Class F notes. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread. This transaction is First Investors’ second securitization in 2019 and its twenty sixth securitization since 2002.
First Investors is an experienced and capable originator and servicer of subprime auto loans. The company was founded over 30 years ago and has benefitted from a stable and experienced management team, which has managed its business through several economic cycles.
KBRA applied its Global Auto Loan ABS Rating methodology and Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and First Investors’ historical static pool data. KBRA also conducted an operational assessment on 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.
To access ratings, reports and disclosures, click here.
Preliminary Ratings Assigned: First Investors Auto Owner Trust 2019-2
|
Class |
Preliminary Rating |
Expected Initial |
|
A |
AAA (sf) |
$150,890,000 |
|
B |
AA+ (sf) |
$15,640,000 |
|
C |
A+ (sf) |
$20,360,000 |
|
D |
A- (sf) |
$14,360,000 |
|
E |
BBB (sf) |
$7,400,000 |
|
F |
BB+ (sf) |
$5,670,000 |
Related Publications: (available at www.kbra.com)
- First Investors Auto Owner Trust 2019-2 Pre-Sale Report
- First Investors Auto Owner Trust 2019-2 KCAT
- Global Auto Loan ABS Rating Methodology
- Global Structured Finance Counterparty Methodology
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About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Contacts
Analytical:
Eric Neglia, Managing Director
(646) 731-2456
eneglia@kbra.com
William Carson, Senior Director
(646) 731-2405
wcarson@kbra.com
Michael Polvere, Senior Analyst
(646) 731-3339
mpolvere@kbra.com
Business Development:
Ted Burbage, Managing Director
(646) 731-3325
tburbage@kbra.com