DBRS Confirms Rating on Amended Santander Consumer Receivables 9 LLC

DBRS, Inc. (DBRS) has today confirmed the A (sf) rating on the Santander Consumer Receivables 9 LLC transaction. The rating confirmation is in response to amendments to the warehouse transaction that were effective as of February 8, 2016, in addition to improved performance of the portfolio. The changes include modifications to advance rate requirements and credit enhancements that are commensurate with an A (sf) rating.

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 benefit from credit enhancement in the form of overcollateralization, the reserve fund and excess spread. Credit enhancement levels are sufficient to support DBRS-projected expected cumulative net loss assumptions under various stress scenarios.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay 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.
-- The credit quality of the collateral and performance of the portfolio.
-- The improvement of performance demonstrated in 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, 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.”

The Santander Consumer Receivables 9 LLC facility is a warehouse provided to Santander Consumer USA Inc. (SC) for the financing of marine loan and recreational vehicle loan receivables. SC acts as the servicer for the facility.

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

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

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