KBRA assigns preliminary ratings to four classes of notes issued by First Investors Auto Owner Trust 2023-1 (“FIAOT 2023-1”), an auto loan ABS transaction.

This transaction represents the first ABS securitization in 2023 for Stellantis Financial Services, Inc. d/b/a First Investors Financial Services (“SFS” or the “Company”), the third since the Company’s acquisition on November 1, 2021 by Stellantis N.V. (“Stellantis”) and its 34^th securitization since 2002.

FIAOT 2023-1 will issue four classes of notes totaling $219.74 million, where credit enhancement consists of overcollateralization (“O/C”), excess spread, a reserve fund funded at closing, and subordination (except for the Class D Notes). The transaction has initial credit enhancement levels ranging from 32.75% for the Class A notes to 10.50% for the Class E notes. The notes are backed by a pool of fixed rate retail automobile contracts, which are made 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.

KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of SFS, as well as several business updates with the Company since that time. 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. 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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