DBRS Morningstar’s Auto Fleet Lease ABS Sector Outlook—Stable Despite the Coronavirus

The quick spread of the Coronavirus Disease (COVID-19) across the globe has led to precipitous change in consumer behavior and affected many businesses throughout the U.S. economy. While the pandemic has affected numerous industries and, potentially, asset-backed securities (ABS) asset classes, for certain sectors the impact has been more benign. One such asset class, auto fleet leases, has unique characteristics whereby ABS investors may experience limited deterioration in performance and/or repayment prospects.