KBRA Assigns Preliminary Ratings to Notes Issued by Flagship Credit Auto Trust 2020-1

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by Flagship Credit Auto Trust 2020-1 (“FCAT 2020-1”), an auto loan ABS transaction.

The collateral in the FCAT 2020-1 transaction includes approximately $236 million of receivables as of the statistical cutoff date. The Notes are collateralized by a pool of auto loan contracts originated (1) on an indirect basis mainly through franchise auto dealers and (2) a direct basis from online aggregators and other fulfillment partners. 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 35.50% for the Class A notes, 26.55% for the Class B notes, 15.20% for the Class C notes, 6.20% for the Class D notes and 1.50% for the Class E notes. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserve account and excess spread. The transaction is the first term ABS securitization in 2020 for the Company and its 30th securitization overall.

KBRA analyzed the transaction using the Global Auto Loan ABS Rating Methodology published on November 28, 2017 and Global Structured Finance Counterparty Methodology published on August 8, 2018. KBRA’s auto loan methodology incorporates an analysis of: (1) the underlying collateral pool, (2) the originator’s historical static pool data, segmented by characteristics including credit quality and product type, (3) the proposed capital structure for the transaction, (4) KBRA’s operational assessment of the originator and servicer and (5) the legal structure, transaction documents, and legal opinions.

Preliminary Ratings Assigned: Flagship Credit Auto Trust 2020-1


Preliminary Rating

Initial Principal Balance


AAA (sf)



AA (sf)



A (sf)



BBB (sf)



BB (sf)


To access ratings, reports and disclosures, click here.

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



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.


Analytical Contacts:
Brendan Carter, Associate Director

(646) 731-3315


William Carson, Senior Director

(646) 731-2405


Business Development Contact:
Ted Burbage, Managing Director

(646) 731-3325


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