KBRA Places Ratings on Flagship Credit Auto Trust 2022-3, Flagship Credit Auto Trust 2023-2 and Flagship Credit Auto Trust 2023-3 on Watch Downgrade
2 Aug 2024 | New York
KBRA places the ratings of the Class E notes of Flagship Credit Auto Trust 2022-3 (“FCAT 2022-3”) and Flagship Credit Auto Trust 2023-2 (“FCAT 2023-2”), and the Class D and Class E notes of Flagship Credit Auto Trust 2023-3 (“FCAT 2023-3”) on Watch Downgrade due to the ongoing deterioration in collateral credit performance evidenced by increased cumulative net loss volumes and FCAT 2022-3 experiencing a decrease in overcollateralization (“O/C”).
The table below displays the current capital structures and Watch Placements undertaken in this review. To date, the securities have received timely interest payments.
As of the July 2024 distribution date (June 2024 collection period), the cumulative net loss for FCAT 2022-3, FCAT 2023-2 and FCAT 2023-3 were 12.54%, 6.91% and 4.96% respectively which are all above KBRA’s base case CNL assumptions at comparable months of seasoning. The current delinquency levels for FCAT 2022-3, FCAT 2023-2 and FCAT 2023-3 were 21.49%, 18.84% and 14.91% respectively and are depicted in the below charts.
KBRA will continue to monitor the performance of the transactions and update and/or resolve the Watch Placements within 90 days.