DBRS Finalizes Provisional Ratings on Avis Budget Rental Car Funding (AESOP) LLC Series 2016-1

DBRS, Inc. has today finalized its provisional ratings on the medium-term notes issued by Avis Budget Rental Car Funding (AESOP) LLC as follows:

-- Series 2016-1, Class A Notes at AAA (sf)
-- Series 2016-1, Class B Notes at A (high) (sf)
-- Series 2016-1, Class C Notes at BBB (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.
-- Credit enhancement in the transaction is dynamic depending on the composition of the vehicles in the fleet and certain market value tests.
-- 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.
-- The transaction parties’ capabilities to effectively manage rental car operations and disposition of the fleet to the extent necessary.
-- Collateral credit quality and residual value performance.
-- The legal structure and its consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology and the presence of legal opinions (to be provided) that address the treatment of the operating lease as a true lease, the non-consolidation of the special-purpose vehicles with Hertz and its affiliates as well as that the trust has a valid first-priority security interest in the assets.

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

Please see the attached appendix for additional information regarding the assumptions used in the rating process and related performance that could impact rating sensitivity.

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.

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