Press Release|ABS
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KBRA Takes Rating Actions on Flagship Credit Auto Trusts

12 Dec 2025   |   New York

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KBRA affirms its ratings on 43 classes of notes, upgrades its ratings on five classes of notes, and downgrades five classes of notes issued from 16 Flagship Credit Auto Trust (“FCAT”) transactions. 44 of the 48 affirmations and upgrades reflect credit support that is adequate to support the affirmed and revised ratings. Three of the ratings were affirmed at CCC (sf) and one at CC (sf) as they remain susceptible to loss over the remaining term of the transactions. Of the downgraded ratings, FCAT 2021-4 Class E, FCAT 2022-1 Class E, and FCAT 2023-2 Class E were lowered to CCC (sf) as the notes are at an increased risk of principal loss since the last review. The remaining two downgrades are reflective of continued credit support erosion and the performance of the underlying collateral. To date, the securities have received timely interest payments. However, all classes rated CCC (sf) and below are not expected to continue receiving timely interest payments. The data used for this review is as of the November 2025 distribution date (October 2025 collection period).

In performing its rating review, KBRA utilized its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying Flagship Credit Auto Trust Comprehensive Surveillance Dashboard.

Flagship Credit Acceptance LLC (“Flagship” or the “Company”) was started in 2010 and is the successor company to Flagship Credit Corporation (“FCC”), which was founded in 2005. In November 2025, Flagship announced an agreement in principle to sell its operations to InterVest Capital Partners.

Flagship originates loans through two marketing channels, “Direct” and “Indirect”. The Direct channel originates, or purchases loans made directly to customers who are refinancing an existing auto loan. Direct loans are sourced from online aggregators and other fulfillment partners. Under its Indirect channel, Flagship originates receivables primarily by purchasing automobile vehicle installment sales contracts from auto dealers who are arranging financing for customers purchasing a new or used vehicle.

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

Methodologies

Disclosures

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 Form(s) 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 Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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