DBRS Confirms Rating on Nissan Collateralized Auto Receivables, LLC

DBRS, Inc. has today confirmed its rating of AAA (sf) on the Nissan Collateralized Auto Receivables, LLC facility (the Facility). The Facility provides funding for loans to be originated up to an advance of $500 million of eligible receivables. The Facility is a warehouse provided to Nissan Motor Acceptance Corporation for the financing of auto loan receivables originated by Nissan Motor Acceptance Corporation, a subsidiary of Nissan North America, Inc.

The ratings are based upon a review by DBRS of the following analytical considerations:

-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement. Credit enhancement is in the form of overcollateralization and excess spread. Credit enhancement levels are sufficient to support DBRS’s projected expected cumulative net loss assumption under various stress scenarios.
-- Established servicer of the receivables and the financial strength of the servicer’s parent, Nissan Motor Co., Ltd.
-- The collateral and performance of Nissan Motor Acceptance Corporation’s originated auto loan portfolio.
-- The legal structure and presence of legal opinions, which will address the true sale of the assets to the issuer, the non-consolidation of the special-purpose vehicle with Nissan Motor Acceptance Corporation, and that the trust has a valid first priority security interest in the assets and the consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is DBRS Master U.S. ABS Surveillance Methodology, which can be found on our website under Methodologies.

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

DBRS’s rating definitions and the terms of use of such ratings are available at www.dbrs.com.