DBRS Morningstar Assigns Provisional Ratings to Avis Budget Rental Car Funding (AESOP) LLC, Series 2020-1

DBRS, Inc. (DBRS Morningstar) assigned provisional ratings to the following classes of notes to be issued by Avis Budget Rental Car Funding (AESOP) LLC, Series 2020-1 (the Trust):

-- Series 2020-1, Class A Notes at AAA (sf)
-- Series 2020-1, Class B Notes at A (high) (sf)
-- Series 2020-1, Class C Notes at BBB (sf)

The ratings are based on DBRS Morningstar’s review of the following analytical considerations:
-- Transaction capital structure, proposed ratings, and form and sufficiency of available credit enhancement.
-- Credit enhancement in the transaction is dynamic, depending on the composition of the vehicles in the fleet and certain market value tests.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the ratings address the timely payment of interest on a monthly basis and principal by the legal final maturity date.
-- The transaction parties’ capabilities to effectively manage rental car operations and dispose of the fleet to the extent necessary.
-- Collateral credit quality and residual value performance.
-- The legal structure and its consistency with the DBRS Morningstar’s “Legal Criteria for U.S. Structured Finance,” the presence of legal opinions (to be provided) that address the treatment of the operating lease as a true lease, the nonconsolidation of the special-purpose vehicles with Avis Budget Group, Inc. and its affiliates, and that the Trust has a valid first-priority security interest in the assets.

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

The principal methodology is Rating U.S. Rental Car Securitizations, 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.

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at [email protected]

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

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