KBRA Takes Rating Actions and Places Seven FHF Trust and FHF Issuer Trust Ratings on Watch Downgrade

KBRA affirms its ratings on six classes of notes issued from two FHF Trust transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the affirmed ratings. Concurrently, KBRA has placed its ratings on seven classes of notes issued from four First Help Financial Trust and First Help Financial Issuer Trust (“FHF”) subprime auto loan transactions on Watch Downgrade due to deterioration in collateral credit performance evidenced by increases in cumulative net loss (“CNL”) volumes.

The data used for this review is as of the September 2025 distribution date (August 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.

For the two FHF Trust transactions that have rating actions, the rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying FHF Trust Comprehensive Surveillance Dashboard. To date, all the securities have received timely interest payments.

For the remaining four transactions where KBRA has placed certain ratings on Watch Downgrade, the table below displays the current capital structures.

Cumulative net losses and delinquencies for the four transactions with Watch Placements are depicted in the table below as of the September 2025 distribution date (August 2025 collection period). Cumulative net losses in all of these four transactions are above KBRA’s base case assumptions at comparable months of seasoning.

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 June 30, 2025, FHF had total assets of $1.2 billion and equity of $103.5 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 September 26, 2025, the Company had drawn $261.10 million of its $700 million in funding commitments from four warehouse lines. Additionally, the Company has sold over $320.16 million of whole loans to community banks.

In 2024, 96% of originations were sourced through franchise dealers and the remaining 4% sources through independent 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.

KBRA will continue to monitor the performance of the four transactions with Watch Placements and expects to resolve or update the Watch Placements within 90 days.

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

Methodologies