Press Release
DBRS Publishes Updated Methodology for Rating U.S. Wholesale Securitizations
AutoDBRS, Inc. (DBRS) has today published an updated methodology entitled “Rating U.S. Wholesale Securitizations” (the Methodology). The Methodology provides an analytical framework for reviewing wholesale securitizations in the United States.
The Methodology provides a discussion of the following:
-- Creditworthiness and business profile of the vehicle manufacturer;
-- Operational and servicing capabilities of finance company as servicer;
-- Profile of dealer base and concentrations within dealer base;
-- Capital structure, proposed ratings and credit enhancement;
-- Liquidation and cash flow analysis; and
-- Legal structure and opinions.
The Methodology’s material updates include:
-- Clarification of when recovery credit is applied in the analytical process.
-- Potential extension of the window for increases in defaults and decreases in payment rates for issuers with lower than average monthly payment rates.
Other updates include:
-- Moving the originator and servicer review sections to their stand-alone methodologies entitled “Operational Risk Assessment for U.S. ABS Originators” and “Operational Risk Assessment for U.S. ABS Servicers,” respectively.
DBRS has also published its new stressed forward interest rate curves per its new “Unified Interest Rate Model for U.S. Wholesale ABS Transactions” that sets forth a consistent platform for the application of interest rate stresses applied across all U.S. wholesale asset-backed security ratings.
These methodologies, effective as of the date of this press release, supersede any previous methodologies. While it is not anticipated that the methodologies will result in any rating actions, all wholesale transactions rated by DBRS are placed Under Review with Developing Implications and any rating actions will be published as soon as possible.
Notes:
DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.
For more information on ratings for U.S. auto lease securitizations, visit www.dbrs.com or contact us at info@dbrs.com.
Ratings
CNH Wholesale Master Note Trust Series 2013-2
Ford Credit Floorplan Master Owner Trust A
NCF Dealer Floorplan Master Trust, Series 2014-1
Navistar Financial Dealer Note Master Owner Trust II, Series 2012-VFN
Navistar Financial Dealer Note Master Owner Trust II, Series 2013-1
Navistar Financial Dealer Note Master Owner Trust II, Series 2013-2
Navistar Financial Dealer Note Master Owner Trust II, Series 2014-1
NextGear Floorplan Master Owner Trust, Series 2014-1
ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.
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Related Documents
Methodology Used:
Contacts
Claire Mezzanotte
Group Managing Director, Global Head of Structured Finance Ratings - Credit Ratings Leadership
+(1) 212 806 3272
claire.mezzanotte@morningstar.com- Chris O'Connell
Senior Vice President - US ABS Ratings
+(1) 212 806 3253
christopher.oconnell@morningstar.com - Kathleen Tillwitz
Managing Director - US Structured Finance Ratings, Operational Risk
+(1) 212 806 3265
kathleen.tillwitz@morningstar.com