DBRS Assigns Provisional Ratings to Driver Australia Two Trust

DBRS, Inc. (DBRS) has today assigned provisional ratings of AAA (sf) and A (high) (sf) to the Class A and Class B Notes, respectively, issued by Driver Australia Two Trust. The receivables to be securitised consist of chattel mortgages and commercial hire purchase and consumer loan contracts related to motor vehicles.

The ratings are based on DBRS’s review of the following analytical considerations:

-- Transaction capital structure and form and sufficiency of available credit enhancement.
-- Relevant credit enhancement in the form of a cash collateral account and various forms of subordination including the Class B Notes, a Subordinated Loan and a Collateral Loan. Credit enhancement levels are sufficient to support the DBRS-projected expected cumulative net loss assumption under various stress scenarios at a AAA (sf) standard for the Class A Notes and an A (high) (sf) standard for the Class B Notes issued by Driver Australia Two Trust.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested.
-- The transaction parties’ capabilities with respect to originations, underwriting, servicing and financial strength.
-- The credit quality of the collateral and ability of the Servicer to perform collection activities on the collateral.

Note:
All figures are in Australian dollars unless otherwise noted.

The principal methodologies applicable are Legal Criteria for U.S. Structured Finance (July 2014), Rating U.S. Retail Auto Loan Securitizations (December 2014), Operational Risk Assessment for U.S. ABS Servicers (December 2014) and Unified Interest Rate Model for U.S. Auto Loan ABS Transactions (August 2013), which can be found on dbrs.com under Methodologies.

The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.