DBRS Morningstar Upgrades GM Financial Automobile Leasing Trust 2018-PP10

DBRS, Inc. (DBRS Morningstar) upgraded the rating on the Series 2018-PP10 Note issued by GM Financial Automobile Leasing Trust 2018-PP10 to AAA (sf) from AA (sf).

RATING RATIONALE/DESCRIPTION
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 September 2019.

The transaction is a securitization of U.S. auto leases with a solitary class of rated securities. The deal benefits from credit enhancement consisting of overcollateralization and a reserve account. As of the November 2019 Distribution Date, overcollateralization was at its target and the reserve account was fully funded to its required level. Credit enhancement was 20.12%. The Indenture Note factor was 67.55%. The pool factor of the Aggregate Securitization Value of the collateral was 72.08%. Delinquencies aged 30+ days were 1.03%, and delinquencies aged 60+ days were 0.33%. Cumulative credit losses were approximately $508,431. The cumulative residual gain on returned vehicles was $9,119,824.

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 not 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:

This is the first rating action since the Initial Rating Date.
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: Erin Stafford, Managing Director, Head of North American CMBS - Global Structured Finance
Initial Rating Date: December 21, 2018

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

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