DBRS Publishes Updated Methodologies for U.S. Retail Auto Loan ABS Transactions

DBRS, Inc. (DBRS) has today published an updated methodology regarding the rating approach for U.S. retail auto loan asset-backed (ABS) transactions. The methodology, Rating U.S. Retail Auto Loan Securitizations, outlines the key factors analyzed, which include:

-- Quality of originations and underwriting practices;
-- Quality of servicing capabilities;
-- Collateral quality analysis;
-- Capital structure, target ratings and credit enhancement;
-- Cash flow scenario analysis; and
-- Legal structure and opinions.

DBRS has also published its Unified Interest Rate Model for U.S. Retail Auto Loan ABS Transactions methodology. The purpose of this methodology is to provide a consistent platform for the application of interest rate stresses applied across all U.S. retail auto loan ABS ratings. As such, the platform generates upwards and downwards stresses for such diverse interest rates as U.S. LIBOR, CP, PRIME, CMT and MTA.

These methodologies, effective as of the date of this press release, supersede any previous methodologies. Neither methodology includes any material changes, and all outstanding DBRS-rated U.S. auto loan transactions meet the criteria set forth in both rating methodologies. Accordingly, no rating actions will be taken on any outstanding transactions.

DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.