KBRA Takes Rating Actions on Flagship Credit Auto Trusts

KBRA affirms its ratings on 45 classes of notes, upgrades its ratings on three classes of notes, and downgrades 11 classes of notes issued from 16 Flagship Credit Auto Trust (“FCAT”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the upgraded and affirmed ratings. Of the downgraded ratings, FCAT 2022-2 Class D, FCAT 2022-3 Class E, and FCAT 2022-4 Class E were lowered to CCC (sf) as the notes are at an increased risk of principal loss since the last review. The remaining eight 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 May 2025 distribution date (April 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. The Company is majority owned and capitalized by affiliates of Perella Weinberg Partners’ Asset Based Value Strategy. KBRA reviewed financial and liquidity information provided by the Company and considered it in its analysis.

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.

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

Methodologies