DBRS Morningstar Takes Rating Actions on Flagship Credit Auto Trust

DBRS, Inc. (DBRS Morningstar) confirmed, upgraded, or discontinued its ratings on the following classes of securities included in 16 Flagship Credit Auto Trust transactions:

-- Flagship Credit Auto Trust 2016-2, Series 2016-2, Class B, discontinued due to repayment
-- Flagship Credit Auto Trust 2016-2, Series 2016-2, Class C, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2016-2, Series 2016-2, Class D, upgraded to AAA (sf)
-- Flagship Credit Auto Trust 2016-4, Series 2016-4, Class B, discontinued due to repayment
-- Flagship Credit Auto Trust 2016-4, Series 2016-4, Class C, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2016-4, Series 2016-4, Class D, upgraded to AAA (sf)
-- Flagship Credit Auto Trust 2016-4, Series 2016-4, Class E, upgraded to A (low) (sf)
-- Flagship Credit Auto Trust 2017-1, Series 2017-1, Class B, discontinued due to repayment
-- Flagship Credit Auto Trust 2017-1, Series 2017-1, Class C, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2017-1, Series 2017-1, Class D, upgraded to AAA (sf)
-- Flagship Credit Auto Trust 2017-1, Series 2017-1, Class E, upgraded to BBB (high) (sf)
-- Flagship Credit Auto Trust 2017-2, Series 2017-2, Class B, discontinued due to repayment
-- Flagship Credit Auto Trust 2017-2, Series 2017-2, Class C, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2017-2, Series 2017-2, Class D, upgraded to AAA (sf)
-- Flagship Credit Auto Trust 2017-2, Series 2017-2, Class E, upgraded to A (low) (sf)
-- Flagship Credit Auto Trust 2017-3, Series 2017-3, Class A, discontinued due to repayment
-- Flagship Credit Auto Trust 2017-3, Series 2017-3, Class B, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2017-3, Series 2017-3, Class C, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2017-3, Series 2017-3, Class D, upgraded to AA (high) (sf)
-- Flagship Credit Auto Trust 2017-3, Series 2017-3, Class E, upgraded to A (sf)
-- Flagship Credit Auto Trust 2017-4, Series 2017-4, Class A, discontinued due to repayment
-- Flagship Credit Auto Trust 2017-4, Series 2017-4, Class B, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2017-4, Series 2017-4, Class C, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2017-4, Series 2017-4, Class D, upgraded to AA (sf)
-- Flagship Credit Auto Trust 2017-4, Series 2017-4, Class E, upgraded to BBB (high) (sf)
-- Flagship Credit Auto Trust 2018-1, Class A Notes, discontinued due to repayment
-- Flagship Credit Auto Trust 2018-1, Class B Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2018-1, Class C Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2018-1, Class D Notes, upgraded to AA (low) (sf)
-- Flagship Credit Auto Trust 2018-1, Class E Notes, upgraded to BBB (sf)
-- Flagship Credit Auto Trust 2018-2, Class A Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2018-2, Class B Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2018-2, Class C Notes, upgraded to AAA (sf)
-- Flagship Credit Auto Trust 2018-2, Class D Notes, upgraded to A (high) (sf)
-- Flagship Credit Auto Trust 2018-2, Class E Notes, upgraded to BBB (sf)
-- Flagship Credit Auto Trust 2018-3, Class A Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2018-3, Class B Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2018-3, Class C Notes, upgraded to AAA (sf)
-- Flagship Credit Auto Trust 2018-3, Class D Notes, upgraded to A (sf)
-- Flagship Credit Auto Trust 2018-3, Class E Notes, confirmed at BB (sf)
-- Flagship Credit Auto Trust 2018-4, Class A Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2018-4, Class B Notes, upgraded to AAA (sf)
-- Flagship Credit Auto Trust 2018-4, Class C Notes, upgraded to AA (sf)
-- Flagship Credit Auto Trust 2018-4, Class D Notes, upgraded to BBB (high) (sf)
-- Flagship Credit Auto Trust 2018-4, Class E Notes, confirmed at BB (sf)
-- Flagship Credit Auto Trust 2019-1, Class A Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2019-1, Class B Notes, upgraded to AAA (sf)
-- Flagship Credit Auto Trust 2019-1, Class C Notes, upgraded to AA (sf)
-- Flagship Credit Auto Trust 2019-1, Class D Notes, upgraded to BBB (high) (sf)
-- Flagship Credit Auto Trust 2019-1, Class E Notes, confirmed at BB (sf)
-- Flagship Credit Auto Trust 2019-2, Class A Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2019-2, Class B Notes, upgraded to AAA (sf)
-- Flagship Credit Auto Trust 2019-2, Class C Notes, confirmed at A (sf)
-- Flagship Credit Auto Trust 2019-2, Class D Notes, confirmed at BBB (sf)
-- Flagship Credit Auto Trust 2019-2, Class E Notes, confirmed at BB (sf)
-- Flagship Credit Auto Trust 2019-3, Class A Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2019-3, Class B Notes, confirmed at AA (sf)
-- Flagship Credit Auto Trust 2019-3, Class C Notes, confirmed at A (sf)
-- Flagship Credit Auto Trust 2019-3, Class D Notes, confirmed at BBB (sf)
-- Flagship Credit Auto Trust 2019-3, Class E Notes, confirmed at BB (sf)
-- Flagship Credit Auto Trust 2019-4, Class A Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2019-4, Class B Notes, confirmed at AA (sf)
-- Flagship Credit Auto Trust 2019-4, Class C Notes, confirmed at A (sf)
-- Flagship Credit Auto Trust 2019-4, Class D Notes, confirmed at BBB (sf)
-- Flagship Credit Auto Trust 2019-4, Class E Notes, confirmed at BB (sf)
-- Flagship Credit Auto Trust 2020-1, Class A Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2020-1, Class B Notes, confirmed at AA (sf)
-- Flagship Credit Auto Trust 2020-1, Class C Notes, confirmed at A (sf)
-- Flagship Credit Auto Trust 2020-1, Class D Notes, confirmed at BBB (sf)
-- Flagship Credit Auto Trust 2020-1, Class E Notes, confirmed at BB (sf)
-- Flagship Credit Auto Trust 2020-2, Class A Notes, confirmed at AAA (sf)
-- Flagship Credit Auto Trust 2020-2, Class B Notes, confirmed at AA (sf)
-- Flagship Credit Auto Trust 2020-2, Class C Notes, confirmed at A (sf)
-- Flagship Credit Auto Trust 2020-2, Class D Notes, confirmed at BBB (sf)
-- Flagship Credit Auto Trust 2020-2, Class E Notes, confirmed at BB (sf)

The rating actions are based on the following analytical considerations:
-- The transaction assumptions consider DBRS Morningstar’s set of macroeconomic scenarios for select economies related to the Coronavirus Disease (COVID-19), available in its commentary “Global Macroeconomic Scenarios: September Update,” published on September 10, 2020. DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which have been regularly updated. The scenarios were last updated on September 10, 2020, and are reflected in DBRS Morningstar’s rating analysis.

-- The assumptions consider the moderate macroeconomic scenario outlined in the commentary, with the moderate scenario serving as the primary anchor for current ratings. The moderate scenario remains predicated on a more rapid return of confidence and a steady recovery heading into 2021. Observed performance during the 2008–09 financial crisis and the possible impact from stimulus were also considered in the assumptions.

-- Transaction’s capital structure, and form and sufficiency of available credit enhancement. The current level of hard credit enhancement and estimated excess spread are sufficient to support the DBRS Morningstar-projected remaining cumulative net loss (CNL) (including an adjustment for the moderate scenario) assumption at a multiple of coverage commensurate with the ratings above.

-- The collateral performance to date and DBRS Morningstar's assessment of future performance, including upward revisions to the expected CNL assumptions consistent with the expected unemployment levels in the moderate scenario.

-- The transaction parties’ capabilities with regard to origination, underwriting, and servicing.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (May 27, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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