DBRS Morningstar Confirms Ratings of Series 2015-1, Series 2018-1, and Series 2019-1 Notes Issued by WTH Car Rental ULC

DBRS Limited (DBRS Morningstar) confirmed the ratings of the following notes (collectively, the Notes) issued by WTH Car Rental ULC as part of DBRS Morningstar’s continued effort to provide market participants with updates on an annual basis:

-- Fixed Rate Asset-Backed Senior Notes, Series 2015-1, Class A at AAA (sf)
-- Fixed Rate Asset-Backed Subordinated Notes, Series 2015-1, Class B at A (high) (sf)
-- Fixed Rate Asset-Backed Subordinated Notes, Series 2015-1, Class C at BBB (sf)
-- Fixed Rate Asset-Backed Notes, Series 2018-1 at AAA (sf)
-- Fixed Rate Asset-Backed Notes, Series 2019-1 at AAA (sf)

The confirmations are based on the following factors:

(1) High credit enhancement level. The Notes are protected by dynamic credit enhancement that was sized on the assumption that the fleet will have to be liquidated at its highest peak prior to the Expected Final Payment Date of the Notes. The level of enhancement available for Program Vehicles depends on the rating of the related vehicle manufacturer. For Non-Program Vehicles, the level of enhancement can increase if losses experienced on the disposition of the Non-Program Vehicles exceed a specified threshold.

(2) The transaction continues to perform well and is within DBRS Morningstar’s expected parameters, as defined at the onset of the transaction.

The Notes are repaid through the collection of proceeds arising from the payments received from the lease of the Vehicle Fleet pursuant to the Master Lease Agreement, the repurchase of Program Vehicles by the Program Vehicle Manufacturers, and the sale of Non-Program Vehicles.

DBRS Morningstar monitors the performance of the transaction to identify any deviation from its expectation of the Notes at issuance and to ensure that the ratings remain appropriate. The review is predicated on the timely receipt of performance information from the related providers.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is Master Canadian Structured Finance Surveillance Methodology, which can be found on dbrs.com under Methodologies & Criteria.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

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.

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

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