KBRA assigns preliminary ratings to five classes of notes issued by First Investors Auto Owner Trust 2022-1 (“FIAOT 2022-1”), an auto loan ABS transaction.

FIAOT 2022-1 represents the first ABS securitization in 2022 for Stellantis Financial Services, Inc. d/b/a First Investors Financial Services (“SFS” or the “Company”), and the first since the Company’s acquisition on November 1, 2021, by Stellantis N.V. It is SFS’ 30^th securitization since 2002. The notes are collateralized by a pool of fixed rate retail automobile contracts, originated to subprime obligors who generally have a credit bureau score ranging from 500 to 650 and are secured by new and used non-commercial automobiles.

The transaction includes a prefunding account that will be used to purchase additional receivables up to the sum of 20% of the closing date pool balance plus the expected balance of the subsequent receivables purchased for up to 3 months after closing. Credit enhancement consists of overcollateralization (“O/C”), excess spread, a reserve fund funded at closing, and subordination (except for the Class E Notes).

KBRA applied its Auto Loan ABS Global Rating Methodology and Global Structured Finance Counterparty Methodology as well as ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and SFS’s historical static pool data. KBRA considered its operational reviews of SFS, as well as periodic due diligence calls with SFS. Operative agreements and legal opinions will be reviewed prior to closing.

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Related Publications

• Auto Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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