DBRS Confirms Ratings on Ally Funding Transferor Exclusive Receivables LLC

DBRS, Inc. (DBRS) confirmed the ratings on the variable funding asset-backed notes issued by Ally Funding Transferor Exclusive Receivables LLC (AFTER) as follows:

-- AFTER Retail at A (sf)
-- AFTER Lease at A (sf)
-- AFTER Wholesale at AA (sf)

AFTER includes funding vehicles for three different asset types — auto loan, auto lease and wholesale dealer floorplan receivables — originated and serviced by Ally Financial Inc. (the Company). The ratings address the timely payment of interest and ultimate payment of principal of the notes in accordance with the transaction documents. The rating confirmation is being provided in relation to the execution of amendments to the above facilities dated March 9, 2018, which resulted in the extension of the facilities as well as certain adjustments to the size and composition of each facility.

Consistent with the DBRS “Rating U.S. Retail Auto Loan Securitizations,” “Rating U.S. Auto Lease Securitizations” and “Rating U.S. Wholesale Securitizations” methodologies and as part of the operational risk review of an originator and servicer, DBRS typically performs an on-site visit or has a call with the originator and servicer. For this transaction, DBRS was asked to confirm the rating by a Committed Purchaser, Lloyds Bank PLC, not the servicer or any affiliate. This resulted in limited access to the Company; consequently, no on-site review or call was conducted by DBRS. DBRS deems the operational capacity of the Company to be acceptable, with potential risks related to not conducting an on-site review or call mitigated by a number of factors, including the following:

(1) The Company is rated BBB (low)/R-3 with Stable trends by DBRS.

(2) The Company has sponsored and serviced numerous securitizations of auto loans, auto leases and wholesale dealer floorplans supported by its own originated collateral. DBRS deems the Company to be an experienced originator and servicer, which is demonstrated by strong performance on its outstanding transactions.

(3) DBRS reviewed credit materials prepared in connection with this transaction.

The Retail Loan and Lease Facilities include derivative counterparties. Some of these counterparties have ratings below the level of A (high) set forth in the DBRS “Legal Criteria for U.S. Structured Finance” methodology. However, given the ratings of such counterparties, the replacement threshold of below “A” and the diversity of hedge counterparties, DBRS believes the associated risk is consistent with the assigned ratings on the individual facilities.

Notes:
All figures are in U.S dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the United States and the European Union.

The applicable methodologies are Rating U.S. Retail Auto Loan Securitizations, Rating U.S. Auto Lease Securitizations and Rating U.S. Wholesale Securitizations, which can be found on our website under Methodologies.

This rating was not initiated at the request of the rated entity.

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

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