Market Overview

KBRA Assigns Preliminary Ratings to Notes Issued by Flagship Credit Auto Trust 2018-3

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Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five
classes of notes issued by Flagship Credit Auto Trust 2018-3 ("FCAT
2018-3"), an auto loan ABS transaction.

As of the July 31, 2018 initial cutoff date, FCAT 2018-3 contained
$240.8 million of receivables originated from both the Flagship Credit
Acceptance (FCA) and CarFinance Capital LLC (CarFinance) branded
origination channels and will contain $301.0 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 until two
months after closing. The preliminary ratings reflect the initial credit
enhancement levels of 41.00% for the Class A notes, 30.50% for the Class
B notes, 18.25% for the Class C notes, 9.00% for the Class D notes and
3.25% for the Class E notes. Credit enhancement consists of
overcollateralization, subordination of junior notes, cash reserve
account and excess spread. The transaction is the third term ABS
securitization in 2018 for the Company and its twenty-fourth
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.

For complete details on the analysis, please see KBRA's pre-sale report, Flagship
Credit Auto Trust 2018-3
, which was published at www.kbra.com.

 

Preliminary Ratings Assigned: Flagship Credit Auto Trust 2018-3

Class   Preliminary Rating   Initial Principal Balance
A   AAA (sf)   $183,630,000
B   AA (sf)   $31,610,000
C   A (sf)   $36,880,000
D   BBB (sf)   $27,850,000
E   BB (sf)   $17,310,000
   

To view the full report, click here.

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC Rule 17g-7, to provide a description of a transaction's
representations, warranties and enforcement mechanisms that are
available to investors when issuing credit ratings. KBRA's disclosure
for this transaction can be found in the report available 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, is 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.

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