DBRS Comments on Addition of Zipcar to WTH Car Rental ULC Fixed Rate Asset-Backed Notes, Series 2012-1 and Series 2011-1

DBRS notes that on August 21, 2013, Zipcar Canada Inc. (Zipcar) was added as a General Partner to the WTH Funding Limited Partnership, which has a 100% ownership interest in WTH Car Rental ULC. WTH Car Rental ULC is the issuer of WTH Car Rental ULC Fixed Rate Asset-Backed Notes, Series 2012-1 and Series 2011-1 (collectively, the Notes), each of which DBRS rates at AAA (sf).

The addition of Zipcar as General Partner to the WTH Car Rental program follows the acquisition on March, 14, 2013, by Avis Budget Group Inc. of Zipcar, Inc., the world’s leading car sharing network.

DBRS expects no ratings impact on the Notes as the relative size of the Zipcar business in Canada, in relation to that of WTH Funding Limited Partnership as a whole, is very small, and the number of Zipcar vehicles that will be added to the WTH Car Rental fleet over the next six months is expected to be minimal. Additionally, there are no structural changes to the program such that any Zipcar vehicles will be required to conform to the existing program structure, including depreciation rates, used vehicle limits, and non-program dynamic enhancement requirements.

The Notes are backed by a security interest in a fleet of rental vehicles (consisting of new and used automobiles, minivans, sport utility vehicles, trucks and/or vans) and vehicle receivables originated in Canada. The Notes were issued on a private placement basis, with interest paid monthly from proceeds received primarily from daily rental charges arising on the fleet. Principal is due on the maturity date and will be paid primarily from the sale of the rental vehicles.

Notes:
The applicable methodologies are Rating Canadian Rental Car Securitizations (May 2011) and Legal Criteria for Canadian Structured Finance (September 2012), each of which can be found on our website under Methodologies.