DBRS Assigns Ratings to ARI Funding 9 LLC

DBRS, Inc. (“DBRS”) has assigned a “AA (sf)” rating to the Facility Limit, $250,000,000 issued by ARI Funding 9 LLC. The transaction has been outstanding for two years and is currently funded by The Royal Bank of Scotland.

The originator, Automotive Rentals Inc. (“ARI”), is a fleet lessor that leases fleets of various vehicles to corporations. Overall performance in ARI’s managed portfolio has been excellent. Although there are some special obligors in the pool, the pool is well diversified because ARI provides leasing and management services to multiple industries. The performance is taken into account when DBRS evaluates this asset class, but the obligor and special obligor concentrations drive our loss assumptions. DBRS also assumes that the leases would be rejected in Bankruptcy but in the limited number of obligor bankruptcies ARI has experienced over the last few years, leases have been affirmed resulting in continued collection of lease payments.

The transaction is protected by enhancement equivalent to four times coverage of maximum obligor concentrations after giving credit for recoveries.

Note:
All figures are in U.S. dollars unless otherwise noted.