KBRA Assigns Preliminary Ratings to Notes Issued by Flagship Credit Auto Trust 2019-2

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five
classes of notes issued by Flagship Credit Auto Trust 2019-2 (“FCAT
2019-2”), an auto loan ABS transaction.

The collateral in the FCAT 2019-2 transaction includes approximately
$274 million of receivables as of the April 30, 2019 initial cutoff
date. The collateral originated from both the Flagship Credit Acceptance
(FCA) and CarFinance Capital LLC (CarFinance) branded origination
channels and will contain approximately $342 million after completion of
the prefunding period. The transaction includes a prefunding feature
that allows up to 20% of the collateral pool to be funded up to two
months after closing. The preliminary ratings reflect the initial credit
enhancement levels of 37.10% for the Class A notes, 28.35% for the Class
B notes, 16.85% for the Class C notes, 7.60% for the Class D notes and
1.85% for the Class E notes. Credit enhancement consists of
overcollateralization, subordination of junior notes, cash reserve
account and excess spread. The transaction is the second term ABS
securitization in 2019 for the Company and its twenty-seventh
securitization overall.

KBRA applied its Global 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 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.

Preliminary Ratings Assigned: Flagship Credit Auto Trust 2019-2

Class       Preliminary Rating       Initial Principal Balance
A       AAA (sf)       $218,470,000
B       AA (sf)       $29,920,000
C       A (sf)       $39,310,000
D       BBB (sf)       $31,630,000
E       BB (sf)       $19,660,000

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)


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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.


Alla Mikhalevsky,
CFA, Associate Director
(646) 731-3356
[email protected]

Brendan Carter, Associate
(646) 731-3315
[email protected]

William Carson, Senior Director
(646) 731-2405
[email protected]

Rosemary Kelley, Senior Managing Director
(646) 731-2337
[email protected]

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