DBRS Assigns and Confirms Ratings to First Investors Receivables Funding, LLC

DBRS, Inc. (DBRS) has today confirmed the ratings on the loans issued by First Investors Receivables Trust, LLC. The Class A Loans are confirmed at AA (low) (sf), the Class B Loans are confirmed at A (sf) and the Class C Loans are confirmed at BBB (sf). Additionally, DBRS has assigned new ratings of AA (low) (sf) to the Class A-2 Loans, A (low) (sf) to the Class B-2 Loans and BBB (sf) to the Class C-2 Loans.

The Transaction includes a derivative counterparty with an investment-grade rating below the first threshold level of A (high) (sf) set forth in the DBRS “Legal Criteria for U.S. Structured Finance” methodology. DBRS believes the credit quality of the derivative counterparty is consistent with the assigned ratings.

The ratings are based on DBRS’s review of the following analytical considerations:

-- Transaction capital structure, form and sufficiency of available credit enhancement and the assigned rating. The transaction benefits from credit enhancement in the form of overcollateralization, implied excess spread and a reserve account. Credit enhancement levels are sufficient to support the DBRS-expected loss under various stress scenarios.
-- Strong servicer of the receivables and the financial strength of the servicer, First Investors Servicing Corporation. DBRS performed an operational review of the servicer of the receivables and considers the entity to be an acceptable servicer of sub-prime auto loans.
-- DBRS was provided with sufficient performance data related directly to the type of collateral included in the transaction.
-- The legal structure and presence of legal opinions, which address the true sale of the assets to the borrower, the non-consolidation of the special-purpose vehicle with First Investors Financial Services and 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 principal methodology is Rating U.S. Retail Auto Loan Securitizations, which can be found on dbrs.com under Methodologies.

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.

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