CORRECT and REPLACE KBRA assigns preliminary ratings to FHF Trust 2020-1

NEW YORK–() – In the fifth paragraph of the post it should read: FHF historical static pool data (instead of Byrider historical static pool data).

The corrected version reads as follows:


Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three categories of notes issued by FHF Trust 2020-1 (“FHF 2020-1” or “the Issuer”), a transaction in asset-backed securities of automobile loans to risk.

The impact of COVID-19 has resulted in an economic slowdown and a high unemployment rate, which is expected to negatively impact the performance of auto loans, including those supporting the transaction in question. Due to this risk, KBRA has increased its basic default assumptions for the pool in question in a manner consistent with a recent industry portfolio review detailed in the following report: ABS Securities Watch Report on Auto Loans and Auto Leases in United States in addition to assuming a lower collection rate on delinquent loans.

FHF 2020-1 represents the first rated ABS term securitization for First Help Financial, LLC (“FHF” or the “Company”). FHF 2020-1 will issue three classes of notes totaling $ 143.24 million which are secured by a pool of retail automobile contracts, entered into at risk debtors and secured by new automobiles and trucks (77%) and occasion (23%). The transaction is expected to be secured by approximately $ 149.99 million in fixed-rate installment loans to at-risk borrowers. Ratings reflect initial credit enhancement levels ranging from 30.00% for Class A Notes to 6.50% for Class C Notes.

FHF is a venture capital auto finance company headquartered in Newton, Massachusetts with a satellite office in Phoenix, Arizona. FHF was founded in 2006 and currently offers loans in 20 states. FHF is an indirect auto lender and purchases receivables from franchised and independent dealers. FHF serves consumers who are generally unable to obtain financing from traditional sources of credit such as credit unions, banks and captive auto finance companies.

KBRA applied its Global Auto Loan ABS methodology and structured finance counterparty methodology as part of its analysis of the underlying collateral pool of the transaction, the proposed capital structure and data from FHF’s historical static pool. KBRA also conducted an operational assessment of the Company, as well as a review of the legal structure of the transaction and the transaction documents. KBRA will also review the operational agreements and legal opinions of the transaction prior to closing.

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

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Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, ESG factors (when they are a major driver of credit rating change 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 about the method (s) (including significant models and sensitivity analyzes of relevant key rating assumptions, if any) used to determine the credit rating is available in the United States Information Disclosure Form located here.

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

Further information relating to this rating measure is available in the US Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures can be found at

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the United States Securities and Exchange Commission. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider and is a credit rating agency (ARC) certified with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a rating agency.

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