NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to four classes of bonds issued by Foursight Capital Automobile Receivables Trust 2022-2 (“FCRT 2022-2”), an asset-backed security secured by a pool of auto loans.
FCRT 2022-2 represents the twelfth rated ABS term securitization for Foursight Capital LLC (“Foursight” or the “Company”). This transaction will be secured by approximately $232.76 million in auto loans, mostly at risk, secured by new and used vehicles. As of the statistical cut-off date of June 30, 2022, the weighted average credit rating, interest rate, original term and remaining term were 639, 13.46%, 72 months and 63 months respectively. The average loan size was $22,386 and 90.88% of the loans were secured by used vehicles.
Credit enhancement for the Notes consists of subordination (except Class D Notes), overcollateralization, funded reserve account at closing and each additional funding, and excess spread. Foursight will use the net proceeds from the issuance of the Notes to pay off existing warehouse debt and for general operating purposes.
KBRA applied its global ABS rating methodology for auto loans, as well as the global structured financial counterparty methodology and the global ESG rating methodology as part of its analysis of the transaction’s underlying collateral pool, the structure of the proposed capital and historical data from Foursight’s static pool. KBRA also conducted an operational assessment of the Offeror and the Managing Agent, 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.
Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine the credit rating are available in the information disclosure form(s) located here.
Information on the meaning of each rating category can be found here.
Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency 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.