KBRA issues ratings for FHF note classes

Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to three classes of notes issued by FHF Trust 2022-1, a subprime auto loan asset-backed securities transaction.

First Help Financial (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 in the US and minority owned by two members of the management team.

FHF 2022-1 will issue three classes of notes totalling $150m. 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 overcollateralisation, 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 securitisation for FHF, which was founded in 2006 and currently offers loans in 26 states.