DBRS Confirms Ratings of the Senior Notes Issued by CarFin Finance International Limited

DBRS has today confirmed the A (sf) rating of the Senior Notes issued by CarFin Finance International Limited (the Issuer).

The rating confirmation is based upon review by DBRS of the following analytical considerations:

• Transaction amendments that provide the Issuer the ability to finance vehicles in the Netherlands, as well as certain other program amendments;
• Transaction capital structure and form and sufficiency of available credit enhancement;
• Relevant credit enhancement in the form of a letter of credit and subordination. Credit enhancement levels are sufficient to support a liquidation of the rental fleet under various stress assumptions at an A (sf) standard for the Senior Notes;
• DBRS review of historical market data in the relevant jurisdictions to determine the sufficiency of available credit enhancement relative to the assumed market value stresses in the event of a fleet liquidation;
• DBRS review of the legal regime in each jurisdiction to determine the sufficiency of the liquid portion of the credit enhancement relative to the assumed bankruptcy stay and liquidation periods in each jurisdiction in the event of a fleet liquidation;
• The transaction parties’ financial strength and capabilities with respect to managing rental car operations; and,
• Hedging provisions in the transaction that are consistent with DBRS criteria for an (A) (sf) rating.

The legal structure and presence of legal opinions addressing the assignment of the assets to the Issuer and the consistency with the DBRS Legal Criteria for European Structured Finance Transactions.

Notes:
All figures are in Euros unless otherwise noted.

The principal methodology applicable is the Rating U.S. Rental Car Securitizations. Other methodologies and criteria referenced in this transaction are listed at the end of this press release. These can be found on www.dbrs.com at: http://www.dbrs.com/about/methodologies.

For a more detailed discussion of sovereign risk impact on Structured Finance ratings, please refer to DBRS commentary The Effect of Sovereign Risk on Securitisations in the Euro Area at: http://www.dbrs.com/industries/bucket/id/10036/name/commentaries/.

The sources of information used for this rating include monthly investor reports and certain historical rental fleet information provided by Avis Budget EMEA Limited. DBRS considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

This rating concerns an existing financial instrument.

Information regarding DBRS ratings, including definitions, policies and methodologies are available on www.dbrs.com.

To assess the impact of changing certain transaction parameters on the rating, if the market value stress upon vehicle disposition was 25% higher than what DBRS assumed, the rating on the Senior Notes would have been BBB (low), ceteris paribus. If the market value stress upon vehicle disposition was 50% higher than what DBRS assumed, the rating on the Senior Notes would have been BB (low), ceteris paribus.

In addition, if the bankruptcy stay and liquidation periods were 25% higher than what DBRS assumed, the rating on the Senior Notes would have been BB, ceteris paribus. If the bankruptcy stay and liquidation periods were 50% higher than what DBRS assumed, the rating on the Senior Notes would have been B, ceteris paribus.

For further information on DBRS historic default rates published by the European Securities and Markets Administration (ESMA) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

This credit rating has been issued outside the European Union (EU) and is endorsed by DBRS Ratings Limited. It may be used for regulatory purposes by financial institutions in the EU.

Initial Lead Analyst: Michael Babick
Initial Rating Date: 8 August 2013
Initial Rating Committee Chair: Chuck Weilamann

Last Rating Date: 23 May 2014
Lead Surveillance Analyst: Jayce Fox
Rating Committee Chair: Chuck Weilamann

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The rating methodologies and criteria used in the analysis of this transaction can be found at: http://www.dbrs.com/about/methodologies.

• Rating U.S. Rental Car Securitizations
• Legal Criteria for U.S. Structured Finance Transactions
• Operational Risk Assessment for U.S. ABS Servicers
• Master U.S. ABS Surveillance Methodology