Press Release|ABS
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KBRA Takes Rating Actions on Flagship Credit Auto Trusts

12 Jun 2026   |   New York

Contacts

KBRA affirms its ratings on 30 classes of notes, downgrades its ratings on seven classes of notes and upgrades its ratings on four classes of notes issued from 13 Flagship Credit Auto Trust (“FCAT”) transactions. 28 of the 34 affirmations and upgrades reflect credit support that is adequate to support the affirmed and revised ratings. Five of the ratings were affirmed at CCC (sf) and one at CC (sf) as they remain susceptible to loss over the remaining term of the transactions. Of the downgraded ratings, FCAT 2021-3 Class E, FCAT 2023-1 Class E, and FCAT 2023-3 Class E were lowered to CCC (sf) as the notes are at an increased risk of principal loss since the last review. FCAT 2022-3 Class E was lowered to CC (sf) from CCC (sf) as the notes are at an increased risk of principal loss since the last review and are susceptible to future interest shortfalls. The remaining three downgrades are reflective of continued credit support erosion and the performance of the underlying collateral. To date, the securities have received timely interest payments. However, all classes rated CCC (sf) and below are not expected to continue receiving timely interest payments. The data used for this review is as of the May 2026 distribution date (April 2026 collection period).

In performing its rating review, KBRA utilized its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying Flagship Credit Auto Trust Comprehensive Surveillance Dashboard.

Flagship Credit Acceptance LLC (“Flagship” or the “Company”) was started in 2010 and is the successor company to Flagship Credit Corporation (“FCC”), which was founded in 2005. In January 2026, Flagship Credit Acceptance’s operating assets and business operations were acquired by affiliates of InterVest Capital Partners and now operates as Flagship Financial Group LLC.

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

Methodologies

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), one of the major credit rating agencies (CRA), is a full-service CRA 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. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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