DBRS Confirms Ratings on Globaldrive UK Dealer Floorplan Funding I Limited Series 2007-1 and 2010-1 Asset Backed Floating Rate Notes

DBRS, Inc. confirmed the AAA (sf) ratings on the Globaldrive UK Dealer Floorplan Funding I Limited (Funding I), Asset Backed Floating Rate Notes, Series 2007-1 and Series 2010-1.

Funding I is a beneficiary of a trust consisting of wholesale auto receivables from FCE Bank Plc’s (FCE Bank) UK wholesale portfolio. FCE Bank is a wholly owned subsidiary of FCSH GmbH (Switzerland), which is itself a wholly owned subsidiary of Ford Credit International, Inc. (USA). DBRS considers these assets to be core assets of FCE Bank, whose ultimate parent is Ford Motor Company USA.

The rating confirmation is based upon review by DBRS of the following analytical considerations:

-- The transaction provides the Issuer the ability to finance vehicles in England, Wales, Scotland, Northern Ireland, the Isle of Man, Jersey or Guernsey.
-- The transaction amendments as well as certain other program amendments were analyzed during DBRS’s reconfirmation process.
-- Transaction capital structure and form and sufficiency of available credit enhancement.
-- Historical market data to determine the sufficiency of available credit enhancement relative to the assumed market value stresses in the event of a vehicle liquidation.
-- The credit enhancement for each series of 27.50% overcollateralization, subordination and a cash reserve account.
-- The minimum seller interest at the greater of £1 or the sum of overconcentration and ineligible receivables.
-- These credit enhancement levels are sufficient to support various stress assumptions to vehicle liquidations and or dealer concentration levels under the AAA (sf) standard for the Class A Notes of each series.
-- The transaction parties’ financial strength, historical presence and capabilities with respect to managing the wholesale operations and the dealer network in the region.
-- The legal structure and presence of legal opinions addressing the assignment of the assets to the Issuer and consistency with the DBRS “Legal Criteria for European Structured Finance Transactions.”

A cashflow analysis was conducted for each series. However, due to the inclusion of a revolving period in the transaction and no change in assumptions, the initial analysis based on worst-case criteria set forth in the transaction legal documents was assumed.

Under typical stress assumptions, DBRS assumes the payment rate trigger is breached and the modelling scenarios decline to a floor of 50% below that trigger. Along with this stress, DBRS also assumes that losses increase in its AAA scenarios. To assess the impact of changing certain transaction parameters on the rating, DBRS concludes that for the Class A Notes of each series,

-- A hypothetical decrease of the base case payment rate stress by 25% or a hypothetical increase in default rates by 25%, ceteris paribus, would not lead to a change in the ratings of the Class A Notes.

-- A hypothetical decrease of the base case payment rate stress by 50% would lead to a change in the ratings of the Class A Notes to AA (sf).

-- A hypothetical increase in default rates by 50%, ceteris paribus, would not lead to a change in the ratings of the Class A Notes.

Notes:
All figures are in British pounds sterling unless otherwise noted.

The principal methodology applicable is Rating U.S. Wholesale Auto Securitizations. Additional methodologies used are Legal Criteria for U.S. Structured Finance, Operational Risk Assessment for U.S. ABS Servicers and DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies.

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

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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