DBRS Morningstar Confirms Ratings on 22 Classes of Avis Budget Rental Car Funding (AESOP) LLC

DBRS, Inc. (DBRS Morningstar) confirmed the ratings on 22 securities issued by eight Avis Budget Rental Car Funding (AESOP) LLC transactions:

-- Series 2015-3, Variable Funding Rental Car Asset Backed Notes at A (sf)
-- Series 2017-1 Notes, Class A at AAA (sf)
-- Series 2017-1 Notes, Class B at A (high) (sf)
-- Series 2017-1 Notes, Class C at BBB (sf)
-- Series 2018-2, Class A Notes at AAA (sf)
-- Series 2018-2, Class B Notes at A (high) (sf)
-- Series 2018-2, Class C Notes at BBB (sf)
-- Series 2019-1, Class A Notes at AAA (sf)
-- Series 2019-1, Class B Notes at A (high) (sf)
-- Series 2019-1, Class C Notes at BBB (sf)
-- Series 2019-2, Class A Notes at AAA (sf)
-- Series 2019-2, Class B Notes at A (high) (sf)
-- Series 2019-2, Class C Notes at BBB (sf)
-- Series 2019-3, Class A Notes at AAA (sf)
-- Series 2019-3, Class B Notes at A (high) (sf)
-- Series 2019-3, Class C Notes at BBB (sf)
-- 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)
-- Series 2021-2, Class A Notes at AAA (sf)
-- Series 2021-2, Class B Notes at A (high) (sf)
-- Series 2021-2, Class C Notes at BBB (sf)

The rating actions are based on the following analytical considerations:

-- The transaction analysis considers DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary “Baseline Macroeconomic Scenarios For Rated Sovereigns December 2021 Update,” published on December 9, 2021. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020. The baseline macroeconomic scenarios reflect the view that recent coronavirus developments, particularly the new omicron variant with subsequent restrictions, combined with rising inflation pressures in some regions, may dampen near-term growth expectations in coming months. However, DBRS Morningstar expects the baseline projections will continue to point to an ongoing, gradual recovery.

-- The rental car industry continues to bounce back from the trough of the pandemic. The resumption of leisure travel, coupled with Avis Budget Group, Inc.’s rationalization of its rental fleet, has resulted in improved fleet utilization.

-- Vehicle disposition remains strong as a result of the shortage of new cars. In addition, the demand for rental cars and the potential for increased daily rates provide for significant revenue growth compared with pre-pandemic results.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Notes:
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (January 27, 2022), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

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.

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

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