DBRS Assigns Provisional Ratings to DT Auto Owner Trust 2016-2

DBRS, Inc. (DBRS) has today assigned provisional ratings to the following classes issued by DT Auto Owner Trust 2016-2 (DTAOT 2016-22016-2 or the Issuer):

-- Series 2016-2 Notes, Class A rated AAA (sf)
-- Series 2016-2 Notes, Class B rated AA (sf)
-- Series 2016-2 Notes, Class C rated A (sf)
-- Series 2016-2 Notes, Class D rated BBB (sf)

The ratings are based on DBRS’s review of the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- DTAOT 2016-2 provides for Class A, Class B, Class C and Class D coverage multiples slightly below the DBRS range of multiples set forth in the criteria for this asset class. DBRS believes that this is warranted given the magnitude of expected loss and structural features of the transaction.
-- The transaction parties’ capabilities with regards to originations, underwriting and servicing.
-- The quality and consistency of provided historical static pool data for DriveTime Automotive Group, Inc. (DriveTime) originations and performance of the DriveTime auto loan portfolio.
-- The November 19, 2014, settlement of the Consumer Financial Protection Bureau inquiry relating to allegedly unfair trade practices.
-- Review of the legal structure and presence of legal opinions (to be provided), which address the true sale of the assets to the Issuer, the non-consolidation of the special-purpose vehicle with DriveTime, 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:
The applicable methodology is Rating U.S. Retail Auto Loan Securitizations, which can be found on our website under Methodologies.

The full report providing additional analytical detail is available by clicking on the link or by contacting us at info@dbrs.com.

Please see the attached appendix for additional information regarding sensitivity of assumptions used in the rating process.

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