DBRS Finalizes Provisional Ratings on Exeter Automobile Receivables Trust 2015-3

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following classes issued by Exeter Automobile Receivables Trust 2015-3:

-- Class A Notes rated AAA (sf)
-- Class B Notes rated A (sf)
-- Class C Notes rated BBB (sf)
-- Class D Notes rated BB (sf)

The ratings are based on a review by DBRS of the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement. The transactions benefits from credit enhancement is in the form of overcollateralization, subordination, amounts held in the reserve fund and excess spread. Credit enhancement levels are sufficient to support DBRS-projected expected cumulative net loss assumption under various stress scenarios.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the rating addresses the payment of timely interest on a monthly basis and principal by the legal final maturity date.
-- Exeter Finance Corp.’s (Exeter) capabilities with regard to originations, underwriting, servicing and ownership by the Blackstone Group, Navigation Capital Partners, Inc. and Goldman Sachs Vintage Fund.
-- DBRS has performed an operational review of Exeter and considers the entity to be an acceptable originator and servicer of subprime automobile loan contracts with an acceptable backup servicer.
-- Exeter’s senior management team has considerable experience and a successful track record within the auto finance industry.
-- The credit quality of the collateral and performance of Exeter’s auto loan portfolio.
-- The improvement of performance demonstrated in monthly origination vintage static pools and improving pool statistics.
-- The legal structure and presence of legal opinions that address the true sale of the assets to the Issuer, the non-consolidation of the special-purpose vehicle with Exeter and that the trust has a valid first-priority security interest in the assets and the consistency with the DBRS methodology “Legal Criteria for U.S. Structured Finance.”

Notes:
The applicable methodology is Rating U.S. Retail Auto Loan Securitizations (December 2014), which can be found on our website under Methodologies.

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