OREANDA-NEWS. S&P Global Ratings today assigned its ratings to Flagship Credit Auto Trust 2016-3's $440 million auto receivables-backed notes (see list).

The note issuance is an asset-backed securities transaction backed by subprime auto loan receivables.

The ratings reflect the following key strengths and concerns:The availability of approximately 47.93%, 40.81%, 30.72%, 23.80%, and 19.76% credit support (including excess spread) for the class A, B, C, D, and E notes, respectively, based on stressed cash flow scenarios. These credit support levels provide coverage of approximately 3.55x, 3.10x, 2.40x, 1.75x, and 1.50x our 11.50%-12.00% expected cumulative net loss (CNL) range for the class A, B, C, D, and E notes, respectively. The timely interest and principal payments made under stressed cash flow modeling scenarios that are appropriate for the assigned ratings. The expectation that under a moderate ('BBB') stress scenario, all else being equal, our ratings on the class A and B notes would remain within one rating category of 'AAA (sf)' and 'AA (sf)' within the first year, and our ratings on the class C, D, and E notes would remain within two rating categories of 'A (sf)', 'BBB (sf)', and 'BB (sf)', respectively, within the first year. This is within the one-category rating tolerance for 'AAA' and 'AA' rated securities, and within the two-category rating tolerance for 'A', 'BBB', and 'BB' rated securities, as outlined in our credit stability criteria (see "Methodology: Credit Stability Criteria," published May 3, 2010).The credit enhancement in the form of subordination, overcollateralization, a reserve account, and excess spread. The characteristics of the collateral pool being securitized. The transaction's payment and legal structures.