NEW YORK–(COMMERCIAL THREAD) – KBRA assigns preliminary ratings to five categories of notes issued by Foursight Capital Automobile Receivables Trust 2022-1 (“FCRT 2022-1”), an asset-backed security guaranteed by a pool of automobile loans.
FCRT 2022-1 represents the eleventh rated ABS term securitization for Foursight Capital LLC (“Foursight” or the “Company”). This transaction will be secured by approximately $ 293.7 million in mostly near-premium auto loans backed by new and used vehicles. As of the statistical deadline of December 24, 2021, the weighted average credit score, interest rate, initial term and remaining term were 637, 12.47%, 72 months and 62 months, respectively. The average loan size was $ 20,688 and 86.3% of the loans were secured by used vehicles. Up to 25% of the total collateral pool will be pre-funded at closing, and additional eligible loans can be purchased during the pre-funding period, which ends on May 26, 2022.
The credit enhancement of the Notes consists of subordination (except for Class E Notes), overcollateralisation, a reserve account funded at closing and each additional funding, and excess margin. Foursight will use the net proceeds from the issuance of the Notes to repay existing warehouse debt and for general operational purposes.
KBRA applied its global auto loan ABS rating methodology, as well as its global structured finance counterparty methodology and ESG global rating methodology as part of its analysis of the underlying collateral pool of the transaction, the proposed capital structure and data from Foursight’s historical static pool. KBRA also conducted an operational assessment of the originator and servicer, as well as a review of the legal structure of the transaction and transaction documents. KBRA will also review the operational agreements and legal opinions of the transaction prior to closing.
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Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an improvement or a downgrade, and ESG factors (when they are a factor). key to the change in credit rating or rating outlook) can be found in the full assessment report referenced above.
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Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.