DBRS Requests Comment on Proposed Methodology for Rating European Auto Wholesale Securitisations and New Related Appendices for Operational Risk Methodologies

DBRS Ratings Limited (DBRS) is requesting comment on its proposed “Rating European Auto Wholesale Securitisations” methodology.

In addition, DBRS is requesting comment on two appendices added to the following updated methodologies:

(1) The “Sample Operational Risk Agenda for European Auto Wholesale Originators” appendix was added to the existing “Operational Risk Assessment for European Structured Finance Originators” methodology.
(2) The “Sample Operational Risk Agenda for European Auto Wholesale Servicers” appendix was added to the existing “Operational Risk Assessment for European Structured Finance Servicers” methodology.

Comments should be received on or before 2 January 2018. Please submit your comments to the following e-mail address: Structured.Finance.Comments@dbrs.com.

DBRS publishes on its website all comments received except in cases where confidentiality is requested by the respondent.

The proposed methodology and the appendices added to the existing “Operational Risk Assessment for European Structured Finance Originators” and “Operational Risk Assessment for European Structured Finance Servicers” methodologies outline DBRS’s analysis for assigning ratings to auto wholesale securitisations related to passenger cars and motor vehicles. Under the proposed methodology and the appendices, DBRS reviews the following qualitative and quantitative factors when assigning and monitoring ratings to European auto wholesale transactions:

-- Creditworthiness and business profile of the vehicle or asset manufacturer;
-- Operational and servicing capabilities of finance company as servicer;
-- Profile of dealer base and concentrations within the dealer base;
-- Capital structure and credit enhancement levels;
-- Liquidation and cash flow analysis;
-- Legal structure and opinions; and
-- Surveillance/Monitoring

DBRS has determined that no ratings are or will be changed as a result of the proposed methodology and the new appendices.

DBRS does not expect the proposed methodology to affect any outstanding ratings.

Notes:
DBRS criteria and methodologies are publicly available on its website http://www.dbrs.com under Methodologies.

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