DBRS Confirms Ratings to Globaldrive UK Dealer Floorplan Funding I Limited Series 2007-1 and 2010-1 Asset Backed Floating Rate Notes

DBRS, Inc. (DBRS) has today confirmed the AAA (sf) ratings of Globaldrive UK Dealer Floorplan Funding I Limited (Funding I), Asset Backed Floating Rate Notes, Series 2007-1 and Series 2010-1.

Funding I is a beneficiary of a trust consisting of wholesale auto receivables from FCE Bank Plc’s (FCE Bank) UK wholesale portfolio. FCE Bank is a wholly owned subsidiary of FCSH GmbH (Switzerland), itself a wholly owned subsidiary of Ford Credit International, Inc. (USA). DBRS considers these assets to be core assets of FCE Bank, whose ultimate parent is Ford Motor Company USA.

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

-- The transaction provides the Issuer the ability to finance vehicles in England, Wales, Scotland, Northern Ireland, the Isle of Man, Jersey or Guernsey.
-- The transaction amendments, as well as certain other program amendments, were analyzed in our reconfirmation process.
-- Transaction capital structure and form and sufficiency of available credit enhancement.
-- DBRS review of historical market data to determine the sufficiency of available credit enhancement relative to the assumed market value stresses in the event of a vehicle liquidation.
-- Among the amendments were a reduction in credit enhancement and minimum seller interest for each series.
-- The credit enhancement for each series of 27.50% overcollateralization and or subordination and a cash reserve account (0.50% of the facility limit).
-- The minimum seller interest at the greater of £1 or the sum of overconcentration and ineligible receivables.
-- These credit enhancement levels are sufficient to support various stress assumptions to vehicle liquidations and or dealer concentration levels under a AAA (sf) standard for the Class A Notes of each series.
-- The transaction parties’ financial strength, historical presence and capabilities with respect to managing the wholesale operations and the dealer network in the region.
-- 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” on: 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 performance information provided by FCE Bank. DBRS considers the information available to it for the purposes of providing this rating was 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.

Under typical stress assumptions, DBRS assumes the payment rate trigger is breached and the modelling scenarios decline to a floor of 50% below that trigger. Along with this stress, DBRS also assumes losses increase in our AAA scenarios. To assess the impact of changing certain transaction parameters on the rating, if the payment rate trigger declined by 25% more than the floor and defaults increase by 25% of the typical stress scenario assumptions, the rating on the Senior Notes would have still have been AAA.

DBRS concludes that for the Class A Notes:
-- A hypothetical decrease of the base case payment rate stress by 25% and a hypothetical increase in default rates by 25%, ceteris paribus, would not lead to a change in the ratings of the Class A Notes.
-- A hypothetical decrease of the base case payment rate stress by 50% and a hypothetical increase in default rates by 50%, ceteris paribus, would lead to a downgrade in the ratings of the Class A Notes to AA (sf).

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: Chris O’Connell
Series 2007-1 Initial Rating Date: January 2010
Series 2010-1 Initial Rating Date: June 2012
Initial Rating Committee Chair: Chuck Weilamann

Last Rating Date: 12 June 2014
Lead Surveillance Analyst: Jayce Fox
Rating Committee Chair: Chuck Weilamann

DBRS, Inc.
140 Broadway, 35th Floor
New York, NY 10005
USA

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. Wholesale Auto Securitizations
Legal Criteria for U.S. Structured Finance Transactions
Operational Risk Assessment for U.S. Structured Finance Servicers
Master U.S. Structured Finance Surveillance Methodology