DBRS Confirms Ratings to DFM Master S.A.

DBRS Inc., (DBRS) has today confirmed the AAA (sf) ratings originally assigned on May 24, 2011, and subsequently confirmed on August 25, 2011, to the Series 2011-1, 2011-2, 2011-3, 2011-4, and 2011-5 Asset Backed Notes issued by DFM Master S.A. acting for and on behalf of its Compartment 1. The receivables securitized consist of loans made by Dealers Financierings Maatschaapij, N.V. (DFM N.V.) to corporate lessors for purposes of financing their leasing business. The loans are secured by a security interest in the underlying vehicles and leases. DFM N.V is a subsidiary of Volkwagen Pon Financial Services, B.V (VWPFS) which is 60% owned by Volkswagen Financial Services Group.

The ratings are based upon review by DBRS of the following analytical considerations:

•Transaction capital structure and form and sufficiency of available credit enhancement.

•Relevant credit enhancement in the form of a cash collateral account and overcollateralisation. Credit enhancement levels are sufficient to support DBRS projected expected cumulative net loss (CNL) assumption (including residual losses) under various stress scenarios at a AAA (sf) standard.

•The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms in which they have invested.

•The transaction parties’ capabilities with respect to originations, underwriting, servicing, and financial strength.

•The credit quality of the collateral and ability of the Servicer to perform collection activities on the collateral.

Note:
All figures are in Euros unless otherwise noted.

The principal methodologies applicable are Rating European Consumer and Commercial Asset-Backed Securitisations and the DBRS Legal Criteria for European Structured Finance Transactions, and Swap Criteria for European Structured Finance Transactions which can be found on our website under Methodologies. This is an existing financial instrument.

The sources of information used for this rating include performance data relating to the receivables provided by Dealers Financierings Maatschaapij N.V. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

This confirms an existing DBRS rating on this financial instrument.

This credit rating has been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU.

For additional information on this rating, please refer to the linking document.

Lead Analyst: Mike Babick
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 24th May 2011