DBRS Confirms WTH Car Rental ULC Fixed Rate Asset-Backed Notes, Series 2011-1 and Series 2012-1 at AAA (sf)

DBRS has today confirmed the ratings on the following notes (collectively, the Notes), issued by WTH Car Rental ULC (the Issuer) as part of DBRS’s continued effort to provide market participants with updates on an annual basis:

-- Fixed Rate Asset-Backed Notes, Series 2011-1 at AAA (sf)
-- Fixed Rate Asset-Backed Notes, Series 2012-1 at AAA (sf)

The ratings are based on the following factors:

(1) High credit enhancement level. 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, as 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), Budgetcar Inc. (Budget) and Zipcar Canada Inc. (Zipcar) 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.

Notes:
The applicable methodologies are Rating Canadian Rental Car Fleet Securitizations (October 2013), Canadian Structured Finance Surveillance (June 2013) and Legal Criteria for Canadian Structured Finance (September 2013), which are available on our website under Methodologies.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.