Press Release|ABS
View PDF

KBRA Affirms and Downgrades Ratings from FHF Trust and FHF Issuer Trust Securitizations

14 Jan 2026   |   New York

Contacts

KBRA affirms its ratings on 11 classes of notes and downgrades its ratings on three classes of notes issued from four First Help Financial Trust and First Help Financial Issuer Trust (“FHF”) transactions. Concurrently, KBRA removes the Watch Downgrade Placements for the Class C note rating on FHF 2023-1, the Class D note rating on FHF 2023-2, the Class B, Class C and Class D note ratings on FHF 2024-3 and the Class B and Class C notes ratings on FHF 2025-1. The affirmations reflect credit support that is adequate to support the outstanding ratings. The downgrades reflect the deterioration of collateral performance evidenced by increases in cumulative net loss (“CNL”) and credit enhancement that does not support the prior rating based on KBRA’s updated loss expectation. The data used for this review is as of the December 2025 distribution date (November 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating 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 FHF Comprehensive Surveillance Dashboard.

Headquartered in Needham, Massachusetts, First Help Financial (“FHF” or the “Company”) is a subprime auto finance company that was founded in 2006 and currently offers loans in 29 states. FHF is an indirect auto lender and purchases receivables from franchise and independent dealers. The Company is privately held with the Treacy family as the majority owner and two members of the management team as minority owners. Based on financials provided by the Company, FHF is profitable and has increased revenue year over year since 2016. The Company reported pre-tax net income of $67.9 million in FY 2024. As of November 30, 2025, FHF had total assets of $1.3 billion and equity of $115.2 million. The Company has demonstrated the ability to secure liquidity from a variety of banks and capital market sources at staggered maturity dates. As of December 31, 2025, the Company had drawn $102 million of its $400 million funding commitments from three warehouse lines. Additionally, the Company has sold more than $67 million and $90 million of whole loans to community banks in 2025 and 2024, respectively.

FHF originates loans through franchise and independent dealers with 95% of 2025 originations being sourced through franchise dealers. The Company’s target consumer base is typically unable to obtain financing from traditional lending sources such as credit unions, banks, and captive auto finance companies. FHF’s obligors may have limited or no credit history and may be immigrants with an unverified immigration status.

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.

Doc ID: 1013037