DBRS Assigns Provisional Ratings to California Republic Auto Receivables Trust 2018-1

DBRS, Inc. (DBRS) assigned provisional ratings to the following classes of notes to be issued by California Republic Auto Receivables Trust 2018-1 (the Issuer):

-- $75,000,000 Series 2018-1 Notes, Class A-1 at R-1 (high) (sf)
-- $103,000,000 Series 2018-1 Notes, Class A-2 at AAA (sf)
-- $106,000,000 Series 2018-1 Notes, Class A-3 at AAA (sf)
-- $18,618,000 Series 2018-1 Notes, Class A-4 at AAA (sf)
-- $32,721,000 Series 2018-1 Notes, Class B at AAA (sf)
-- $38,973,000 Series 2018-1 Notes, Class C at A (high) (sf)
-- $25,010,000 Series 2018-1 Notes, Class D at BBB (high) (sf)

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

-- This transaction represents the 15th securitization of prime auto loans issued under this shelf. This is the first securitization after the completion of a merger of California Republic Bank with and into Mechanics Bank (Mechanics).
-- 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 regard to originations, underwriting and servicing as well as 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 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 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.

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

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrs.com.