KBRA assigns preliminary ratings to seven classes of notes issued by Flagship Credit Auto Trust 2022-4 (“FCAT 2022-4”), an asset-backed securitization collateralized by a pool of auto loans.

FCAT 2022-4 will issue seven classes of notes totaling $401.1 million, collateralized by a pool of auto loan contracts originated on (1) an indirect basis mainly through franchise auto dealers and (2) a direct basis from online aggregators and other fulfillment partners. The transaction has initial hard credit enhancement levels of 37.70% for the Class A Notes through 5.50% for the Class E Notes. Credit enhancement consists of excess spread, overcollateralization, subordination (except for the Class E Notes) and a reserve account funded at closing.

FCAT 2022-4 represents the fourth term ABS securitization in 2022 for FC HoldCo LLC. The underlying loans in the FCAT 2022-4 were originated by Flagship Credit Acceptance LLC (“Flagship” or the “Company”) and CarFinance Capital LLC (“CarFinance”) and are serviced by Flagship.

KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of Flagship, which was conducted at their Chadds Ford, PA headquarters, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Related Publications

• Auto Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology

• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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.

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