Auto Lender First Help Notes at Risk of Downgrade by Kroll

Seven classes of notes from four deals by auto lender First Help Financial are at risk of being downgraded by Kroll Bond Ratings Agency after losses mounted in collateral portfolios.

The four transactions from the auto lender had delinquency rates as high as 6.69% and cumulative net losses of up to 5.56%, according to a Monday release from Kroll which put the deals on “watch downgrade.” The designation signals “meaningful potential” for a ratings cut, according to Kroll’s website. The credit grader will “use reasonable efforts” to reach a final conclusion within 90 days.

The ratings warning on the Needham, ...