DBRS Morningstar Revises Rental Car ABS Sector Outlook to Negative Due to Coronavirus Disease (COVID-19) Concerns

In a commentary published on March 18, 2020, DBRS Morningstar discussed some of the challenges facing the rental car sector and concluded that despite these challenges, the outlook for rental car assetbacked securities (ABS) performance remained stable. However, the rapidity and severity of negative developments likely to impact the credit quality of rental car ABS due to Coronavirus Disease (COVID-19) are greater than originally anticipated, which has led to an unprecedented sustained and precipitous drop in demand for car rentals.