KBRA issues preliminary ratings to FHF Trust 2022-2

NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to three classes of bonds issued by FHF Trust 2022-2 (“FHF 2022-2”), a subprime auto loan asset-backed securities transaction.

FHF 2022-2 will issue three classes of notes totaling $150,023,000. The transaction has initial levels of credit enhancement ranging from 22.68% for Class A Notes to 4.38% for Class C Notes. ranking (except Class C Notes), a cash reserve account and an excess spread. The FHF 2022-2 represents the Company’s first ABS aligned with the 2021 Social Bond Principles administered by the International Capital Market Association (“ICMA”).

This transaction is the fifth rated ABS securitization for First Help Financial, LLC (“FHF” or the “Company”). FHF is a subprime auto finance company headquartered in Needham, MA. FHF was founded in 2006 and currently offers loans in 26 states. FHF is an indirect auto lender and purchases receivables from franchised and independent dealerships. FHF serves consumers who are typically unable to obtain financing from traditional lending sources such as credit unions, banks, and captive auto finance companies. FHF is a private company majority owned by the Treacy family and minority owned by two members of the management team.

KBRA applied its global ABS rating methodology for auto loans, as well as its global structured financial counterparty methodology and its global ESG rating methodology as part of its analysis of the transaction’s underlying collateral pool, the structure of the proposed capital and historical data of FHF’s static pool. KBRA reviewed its operational review of FHF as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.

Click on here to view the report. To access relevant notes and documents, click here.

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Disclosures

Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of key relevant rating assumptions, if any) used to determine credit rating are available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. Additionally, KBRA is designated as the Designated Rating Agency by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.

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