DBRS Assigns Rating to Credit Suisse AG Liquidity Instrument Pursuant to Liquidity Agreement – WST Within GIFS Capital Company, LLC

DBRS, Inc. (DBRS) has today assigned a rating of A (high) (sf) to the Liquidity Instrument pursuant to the Liquidity Agreement dated as of December 10, 2015, by and among GIFS Capital Company, LLC, a Delaware limited liability company; Credit Suisse AG, Cayman Islands Branch as a Liquidity Institution; and Credit Suisse AG, New York Branch as Agent, supporting the transaction Liquidity Agreement – WST within GIFS Capital Company, LLC. The rating assumes that the Liquidity Agreement has been invoked and, as such, the Liquidity Institution is the investor of the notes secured by a revolving pool of timeshare loans originated and serviced by a captive finance company (the Company).

The rating addresses the timely distribution of scheduled monthly interest payments and the ultimate distribution of principal in accordance with the transaction documents.

Consistent with the Rating U.S. Timeshare Loan Securitizations methodology and as part of the operational risk review of an originator and servicer, DBRS typically performs an on-site visit or has a call with the originator and servicer. For this transaction, DBRS was asked to provide the rating by a liquidity provider, not the servicer or any affiliate. This resulted in limited access to the Company; consequently, a management meeting was conducted in lieu of an on-site review by DBRS. DBRS deems the operational capacity of the originator and servicer to be acceptable, with potential risks related to not conducting an on-site review mitigated by a number of factors, including the following:

(1) The Company is rated investment grade by three Nationally Recognized Statistical Rating Organizations.

(2) The Company has extensive history sponsoring and servicing securitizations of timeshare loans supported by its own originated collateral. DBRS deems the Company to be an experienced originator and servicer, which is demonstrated by strong performance on its outstanding transactions.

(3) DBRS held discussions with the liquidity provider regarding the Company’s origination and servicing capabilities, and reviewed credit materials prepared in connection with this transaction.

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

The applicable methodologies are Asset-Backed Commercial Paper Criteria Report: U.S. ABCP Conduits (May 2015) and Rating U.S. Timeshare Loan Securitizations (May 2015), 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.