DBRS Confirms Ratings of Series 2012-1 and Series 2014-1 Notes Issued by WTH Car Rental ULC

DBRS Limited (DBRS) has today confirmed the ratings of 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 2012-1 at AAA (sf)
-- Fixed Rate Asset Backed Senior Notes, Series 2014-1, Class A at AAA (sf)
-- Fixed Rate Asset Backed Subordinated Notes, Series 2014-1, Class B at BBB (high)

The confirmation is 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 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.

DBRS monitors the performance of the transaction to identify any deviation from DBRS’s expectation of the Notes at issuance and to ensure that the rating remains appropriate. The review is predicated on the timely receipt of performance information from the related providers.

Notes:
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

The applicable methodologies are Rating Canadian Rental Car Fleet Securitizations, Canadian Structured Finance Surveillance Methodology and Legal Criteria for Canadian Structured Finance, which are available on our website under Methodologies.

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