DBRS Assigns Provisional Ratings to California Republic Auto Receivables Trust 2017-1

DBRS, Inc. (DBRS) has today assigned provisional ratings to the following Series 2017-1 Notes issued by California Republic Auto Receivables Trust 2017-1:

-- Class A-1 at R-1 (high) (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class B at A (sf)
-- Class C at BBB (sf)

This transaction represents the 14th securitization of prime auto loans issued under this shelf. This is the first securitization after the completion of the merger of California Republic Bank (CRB) with and into Mechanic’s Bank (Mechanics or the Bank). This securitization is similar to the last asset-backed security transaction that DBRS rated for CRB in June 2016. This transaction is being structured as a public U.S. Securities and Exchange Commission-registered transaction.

The ratings are based on the following considerations:
-- The transaction’s capital structure, ratings and form and sufficiency of available credit enhancement.
-- Quality of management and transaction parties.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested.
-- The transaction parties’ capabilities with regards to originations, underwriting and servicing and the financial strength of Mechanics.
-- The credit quality of the collateral.
-- 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 Mechanics, 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:
All figures are in U.S. dollars unless otherwise noted.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

The principal methodology is Rating U.S. Retail Auto Loan Securitizations, which can be found on dbrs.com under Methodologies.

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

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.