DBRS Assigns Ratings to Veritas Receivables, LLC – Credit Agreement

DBRS, Inc. (DBRS) has today assigned ratings of A (low) (sf) and BBB (sf) to the Class A Loan and Class B Loan pursuant to the Veritas Receivables, LLC – Credit Agreement.

The assigned ratings are based upon a review 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, subordination, amounts held in the reserve fund and excess spread. Credit enhancement levels are sufficient to support the DBRS-projected expected cumulative net loss assumption under various stress scenarios.
-- Collateral eligibility criteria and concentration limits related to borrower quality, loan term, credit score and overall portfolio quality will limit the originations to a mix that will remain within a tight tolerance versus the company’s current origination mix.
-- The transaction parties’ capabilities with regards to originations, underwriting and servicing. The existence of an experienced and capable named servicer and the inclusion of a back-up servicer.
-- The experience of the company’s management team.
-- The legal structure and presence of legal opinions that address the true sale of the assets to the borrower, the non-consolidation of the special-purpose vehicle with Veritas Auto Finance LLC, 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.

Veritas Receivables, LLC – Credit Agreement includes a derivative counterparty with a rating below the level of A (high) set forth in the DBRS “Legal Criteria for U.S. Structured Finance” methodology.

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

The applicable methodology is Rating U.S. Retail Auto Loan Securitizations, which can be found 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.