DBRS Finalizes Provisional Ratings on NextGear Floorplan Master Owner Trust, Series 2016-1

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following notes issued by NextGear Floorplan Master Owner Trust, Series 2016-1:

-- Series 2016-1 Notes, Class A-1 rated AAA (sf)
-- Series 2016-1 Notes, Class A-2 rated AAA (sf)
-- Series 2016-1 Notes, Class B rated A (sf)

The ratings are based on a review by DBRS of the following analytical considerations:

-- The transaction parties’ capabilities with regards to originations, underwriting and the servicing and financial strength of the sponsor/servicer.
-- The managed portfolio is currently well diversified. There are a variety of concentration limits within the structure to protect the Notes from a material shift in collateral mix.
-- Performance and quality of the pool of wholesale receivables.
-- Sufficiency of credit enhancement.
-- PFSC acts as warm backup servicer for the master trust. The backup servicer receives and reviews weekly data feeds from NextGear.
-- The legal structure and presence of legal opinions that will address the true sale of the assets to the Issuer, the non-consolidation of the special-purpose vehicle with NextGear, that the trust has a valid first-priority security interest in the assets and consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology.

DBRS has changed the previously named Class B-1 notes to Class B, and the Class B-2 notes have been Discontinued – Withdrawn as they are not being offered.

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

The applicable methodology is Rating U.S. Wholesale Securitizations (February 2015), 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.