KBRA assigns preliminary ratings to three classes of notes issued by FHF Trust 2022-1 (“FHF 2022-1”), a subprime auto loan asset-backed securities transaction.

FHF 2022-1 will issue three classes of notes totaling $150.0 million. The transaction has initial hard credit enhancement levels ranging from 19.55% for the Class A notes to 4.51% for the Class C notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class C notes), a cash reserve account and excess spread.

This transaction is the fourth rated ABS securitization for First Help Financial, LLC (“FHF” or the “Company”). FHF is a subprime auto finance company with headquarters 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 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. FHF is a privately held company majority owned by the Treacy family and minority owned by two members of the management team.

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, which was conducted in March 2020, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Related Publications

• Auto Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

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

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization 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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