DBRS Confirms Ratings on Flagship Credit Auto Trust 2016-2

DBRS, Inc. (DBRS) has today confirmed the ratings of Flagship Credit Auto Trust 2016-2 (the Issuer) as follows:

-- Series 2016-2, Class A-1 at AAA (sf)
-- Series 2016-2, Class A-2 at AA (high) (sf)
-- Series 2016-2, Class B at A (high) (sf)
-- Series 2016-2, Class C at BBB (sf)
-- Series 2016-2, Class D at BB (high) (sf)

This rating action reflects the classes’ credit enhancement levels, which are sufficient to cover DBRS’s expected losses at their current respective rating levels.

The Issuer’s ratings are based on DBRS’s review of the following analytical considerations:

-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to origination, underwriting and servicing.
-- Credit quality of the collateral pool and historical performance.

The confirmation of the ratings of Flagship Credit Auto Trust 2016-2 reflects a reserve account of 2.58% and overcollateralization of 7.25%. As of the April 2017 payment date, the cumulative net loss ratio is 3.12% of the original collateral balance.

Notes:
The principal methodology is DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies.

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.

Please see the attached 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.dbrs.com or contact us at info@dbrs.com.