DBRS Confirms WTH Car Rental ULC Fixed Rate Asset-Backed Notes, Series 2011-1 at AAA (sf)

DBRS has today confirmed the rating of the Fixed Rate Asset-Backed Notes, Series 2011-1 (the Notes) issued by WTH Car Rental ULC (the Issuer) at AAA (sf).

The rating is based on the following factors:

(1) Credit protection is high as the Notes are protected by dynamic credit enhancement, which was sized on the assumption that the fleet will have to be liquidated at its highest peak prior to the Expected Final Payment Date of the Notes. The level of enhancement available for Program Vehicles depends on the rating of the related vehicle manufacturer. For Non-Program Vehicles, the level of enhancement can increase if losses experienced on the disposition of the Non-Program Vehicles exceed a specified threshold.

(2) The transaction continues to perform well and within DBRS’s expected parameters defined at the onset of the transaction.

The Notes are repaid through the collection of proceeds arising from the daily rental of the vehicles in the Vehicle Fleet, the repurchase of Program Vehicles by the Program Vehicle Manufacturers and the sale of Non-Program Vehicles. The Issuer owns the Vehicle Fleet and leases the Vehicle Fleet to Funding LP, operated by Aviscar Inc. (Avis) and Budgetcar Inc. (Budget) as General Partners of Funding LP, for daily rentals to customers. The Issuer subcontracted the administration and operation of the Rental ULC to Funding LP.

DBRS is committed to confirming the ratings of publicly rated asset-backed securities (ABS) transactions on an annual basis as part of the continuing effort to provide market participants with timely and transparent updates. The ratings of other publicly rated ABS notes will be confirmed throughout the year.

Note:
The applicable methodology is Rating Canadian Rental Car Securitizations, which is available on our website under Methodologies.