KBRA Assigns Ratings to Foursight Capital Automobile Receivables Trust 2024-1
1 Feb 2024 | New York
KBRA assigns ratings to five classes of notes issued by Foursight Capital Automobile Receivables Trust 2024-1 (“FCRT 2024-1”), an asset backed security collateralized by a pool of auto loans.
FCRT 2024-1 represents the fifteenth rated term ABS securitization for Foursight Capital LLC (“Foursight” or the “Company”). This transaction will be collateralized by approximately $213.98 million of mostly near-prime automobile loans secured by new and used vehicles. As of the December 31, 2023 statistical cutoff date, the weighted average credit score, interest rate, original term and remaining term were 648, 16.22%, 72 months and 64 months, respectively. The average loan amount was $22,979, and 93.50% of the loans were secured by used vehicles.
Credit enhancement for the notes consists of subordination (except for the Class E Notes), overcollateralization, a reserve account funded at closing and with each additional funding, and excess spread. Foursight will use the net proceeds from the issuance of the notes to pay down existing warehouse debt and for general operating purposes.
KBRA applied its Auto Loan ABS Global Rating Methodology, as well as Global Structured Finance Counterparty Methodology and ESG Global Rating 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.
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