Kroll Bond Rating Agency Assigns Final Ratings to Flagship Credit Auto Trust 2012-1

Business Wire, Inc.

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) assigns final ratings to four classes of Flagship Credit Auto Trust 2012-1, a subprime auto ABS transaction. Concurrently we have withdrawn our preliminary ratings on the certificates, which were assigned on June 26, 2012.

The Flagship Credit Auto Trust 2012-1 are asset-backed securities (ABS) collateralized by $115 million of subprime auto loan receivables. The ratings reflect the initial credit enhancement levels of 71% for the Class A notes, 23% for the Class B notes, 13% for the Class C notes and 7% for the Class D notes. Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread.

KBRA applied its U.S. Auto Loan ABS methodology, which incorporated an analysis of FCA’s underlying collateral pool, the originator’s historical static pool data (segmented by characteristics) and the proposed capital structure for the transaction. KBRA also conducted an operational assessment on the originator and servicer. KBRA’s ratings reflect a review of the transaction’s legal structure and transaction documents.

For complete details on the analysis, please see our Pre-Sale Report, “Flagship Credit Auto Trust 2012-1”, which is available at www.krollbondratings.com.

Final Ratings Assigned: Flagship Credit Auto Trust 2012-1

Class	Rating	Expected Initial Class Principal
A	AA(sf)	$36,000,000
B	A(sf)	$55,000,000
C	BBB(sf)	$10,900,000
D	BB(sf)	$7,100,000

Related Publications:

U.S. Auto Loan ABS Rating Methodology

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).