DBRS Finalizes Provisional Ratings on Foursight Capital Auto Receivables Trust 2017-1

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following Series 2017-1 Notes issued by Foursight Capital Auto Receivables Trust 2017-1 (the Transaction):

-- $133,894,000 Class A at AAA (sf)
-- $16,225,000 Class B at AA (sf)
-- $8,858,000 Class C at A (sf)
-- $13,054,000 Class D at BBB (sf)

This Transaction represents Foursight Capital LLC’s (Foursight or the Company) fourth term securitization of auto loans under the Foursight shelf. This marks the first time that the Company has issued AAA (sf)-rated tranches, and it is the first DBRS-rated transaction with a guarantee from Leucadia National Corp. (Leucadia), Foursight’s parent company. This guarantee was initially provided in the Series 2016-1 transaction.

The ratings are based on the following considerations:
-- The Transaction’s capital structure and the form and sufficiency of available credit enhancement.
-- The Transaction’s ability to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. The rating addresses the timely payment of interest on a monthly basis and the ultimate payment of principal.
-- Quality and experience of Foursight management as well as financial wherewithal and synergies made available to Foursight by its ownership.
-- Leucadia has provided a guarantee in this transaction. The guarantor has unconditionally guaranteed the payment and performance of Foursight of its covenants, agreements and obligations.
-- The Transaction parties’ capabilities with regard to originations, underwriting and servicing.
-- The credit quality of the collateral.
-- The legal structure and presence of legal opinions that address the true sale of the assets to the trust, the non-consolidation of the special-purpose vehicle with Foursight, that the trust has a valid first-priority security interest in the assets and the consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

The principal methodology is Rating U.S. Retail Auto Loan Securitizations, which can be found on dbrs.com under Methodologies.

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

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.

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