NEW YORK—Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to four classes of notes issued by Foursight Capital Automobile Receivables Trust 2017-1 (“FCRT 2017-1”), a subprime auto asset-backed securities transaction.
FCRT 2017-1 will issue four classes of notes in an aggregate principal amount of $172.03 million with an estimated closing date of April 19, 2017. The preliminary ratings reflect the initial credit enhancement levels ranging from 28.70% for the Class A notes to 8.25% for the Class D notes, which build to 30.95% and 10.50% for the Class A and Class D notes, respectively.
This transaction, Foursight Capital Automobile Receivables Trust 2017-1 (“FCRT 2017-1”), represents the fourth rated term ABS securitization for the Company, the first rated term ABS securitization of 2017 and the second rated by KBRA.
Foursight Capital LLC (“Foursight”) is a Utah based automobile finance company that has been in business since 2012. Foursight provides automobile loans primarily to near-prime borrowers who have experienced prior credit difficulties or have limited credit histories with credit bureau scores typically ranging from 580 - 680. Foursight was formed in Q4 2012 by an experienced senior management team that previously led Franklin Capital Corporation (“Franklin Capital”) and is a wholly-owned subsidiary of Leucadia National Corporation (“Leucadia”), a publicly listed holding company .
KBRA applied its U.S. Auto Loan ABS 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 of the Company, 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, Foursight Capital Automobile Receivables Trust 2017-1 Pre-Sale Report, which was published today at www.kbra.com.
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Preliminary Ratings Assigned: Foursight Capital Automobile Receivables Trust 2017-1 |
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| Class | Preliminary Rating | Expected Initial Principal Balance | ||||||
| A | AAA (sf) | $133,894,000 | ||||||
| B | AA (sf) | $16,225,000 | ||||||
| C | A (sf) | $8,858,000 | ||||||
| D | BBB (sf) | $13,054,000 | ||||||
Related Publications:
U.S. Auto Loan ABS Rating Methodology
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
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