DBRS Morningstar Confirms Avis Budget Rental Car Funding (AESOP), LLC Transactions

DBRS, Inc. (DBRS Morningstar) confirmed nine public ratings from three U.S. asset-backed securities (ABS) transactions issued by Avis Budget Rental Car Funding (AESOP), LLC.

The series reviewed were the following:
-- Avis Budget Rental Car Funding (AESOP) LLC, Series 2016-2
-- Avis Budget Rental Car Funding (AESOP) LLC, Series 2017-2
-- Avis Budget Rental Car Funding (AESOP) LLC, Series 2018-1

RATING RATIONALE
The rating rationale includes the following key analytical considerations:
(1) Transaction capital structure, current ratings and form and sufficiency of available credit enhancement.
(2) The transaction parties’ capabilities with regard to origination, underwriting and servicing.
(3) The credit quality of the collateral pool and historical performance as of the October 2019 Distribution Date.

The transactions are securitizations of U.S. rental car receivables. The transactions have dynamic credit enhancement requirements dependent upon pool composition. Forms of credit enhancement may include overcollateralization, subordination, letters of credit and reserve accounts. As of the October 2019 Distribution Date all transactions are within their respective credit enhancement requirements. As measured by three- and six-month rolling averages, the ratio of aggregate Disposition Proceeds from all Non-Program Vehicles disposed of during a related Measurement Month to the aggregate Net Book Value of all Non-Program Vehicles disposed of during a related Measurement Month exceeds 110%.

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

The principal methodology is DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies & Criteria.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar 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.

This rating is endorsed by DBRS Ratings Limited for use in the European Union. The following additional regulatory disclosures apply to endorsed ratings:

The last rating action taken on the 2016-2 transaction took place on October 18, 2018, when the ratings of the securities were confirmed at their respective rating levels. The last rating actions on the 2017-2 and 2018-1 transactions took place on August 22, 2018, when the ratings of the securities were confirmed at their respective rating levels.

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Lead Analyst: Jayce Fox, Senior Vice President, U.S. ABS Surveillance – Global Structured Finance.
Rating Committee Chair: Christopher D'Onofrio, Managing Director, U.S. ABS – Global Structured Finance.
Initial Rating Dates: Initial Rating Dates for the 2016-2, 2017-2 and 2018-1 transactions are June 2, 2016; December 13, 2017; and April 30, 2018; respectively.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at [email protected].

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