KBRA Assigns Preliminary Ratings to FHF Issuer Trust 2024-3
9 Oct 2024 | New York
KBRA assigns preliminary ratings to four classes of notes issued by FHF Issuer Trust 2024-3 (“FHF 2024-3”), a subprime auto loan asset-backed securities transaction.
FHF 2024-3 will issue four classes (five tranches) of notes totaling $281,260,000. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account and excess spread. As of the August 31, 2024 (the “Statistical Calculation Date”), the loans have a non-zero weighted average FICO score of 669 and approximately 43.9% of the borrowers (by current principal balance) do not have a credit score. The loans have an average current balance of $32,448, a weighted average interest rate of 18.93% and weighted average original and remaining terms of 69 and 67 months, respectively.
This transaction is the third rated ABS securitization in 2024 for First Help Financial, LLC (“FHF” or the “Company”) and the tenth subprime auto loan ABS securitization for the Company since 2019.
Headquartered in Needham, MA, FHF is a subprime auto finance company that was founded in 2006 and currently offers loans in 28 states. FHF is an indirect auto lender and purchases receivables from franchise and independent dealers. FHF serves consumers who are typically unable to obtain financing from traditional lending sources such as credit unions, banks, and captive auto finance companies.
KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its 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 FHF’s historical static pool data. KBRA considered its operational review of FHF as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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