NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six classes of notes issued by Foursight Capital Automobile Receivables Trust 2021-1 (“FCRT 2021-1”), an asset backed security collateralized by a pool of auto loans.
FCRT 2021-1 represents the ninth rated term ABS securitization for Foursight Capital LLC (“Foursight” or the “Company”) and the fourth rated by KBRA. FCRT 2021-1 will issue six classes of notes in an aggregate principal amount of $249.16 million. This transaction has a sequential pay structure and is backed primarily by a pool of near-prime automobile loan contracts that are secured by new and used vehicles. Credit enhancement consists of subordination (except for the Class F Notes), overcollateralization, a reserve account funded at closing and with each additional funding, and excess spread.
KBRA applied its Auto Loan ABS Global Rating Methodology and Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Foursight’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.
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 Forms 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 Forms referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. 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) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.
Melvin Zhou, CFA, Senior Director (Lead Analyst)
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Frank Connor, Analyst
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Eric Neglia, Managing Director (Rating Committee Chair)
+1 (646) 731-2456
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Ted Burbage, Managing Director
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