Flagship Credit Acceptance and Tidewater Finance Co. are marketing a combined $602 million of securities backed by subprime auto loans, according to rating agency reports.

The $446.56 million Flagship Credit Auto Trust 2016-1 will issue four tranches of fixed-rate notes with preliminary ratings from Standard & Poor’s and Kroll Bond Rating Agency. The senior A tranche with credit enhancement of 30.75% is rated AA/AA; the B tranche with 19.85% credit enhancment is rated A/A; the C tranche with 9.95% credit enhancement is rated BBB/BBB; and the D tranche with 4.75% credit enhancement is rated BB-/BB.

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