DBRS Morningstar Assigns Ratings to WDL Fleet Lease, Series 2022-A

DBRS, Inc. (DBRS Morningstar) assigned ratings on the following classes issued by WDL Fleet Lease, Series 2022-A:

-- $2,265,700,000 Class A Notes at AAA (sf)
-- $103,400,000 Class B Notes at AA (sf)
-- $130,900,000 Class C Notes at A (sf)
-- $89,500,000 Class D Notes at BBB (high) (sf)
-- $27,600,000 Class E Notes at BBB (sf)
Note: Based on the maximum commitment amount.

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 levels are sufficient to support DBRS Morningstar stressed loss assumptions under various scenarios.
-- The yield supplement account is established to supplement the yield from any lease that does not meet a minimum yield requirement.
-- The transaction’s ability to withstand stressed cash flow assumptions and repay investors according to the terms in which they have invested. The rating addresses the payment of timely interest on a monthly basis and principal by the Legal Final Maturity.
-- LeasePlan USA (LeasePlan) capabilities with regard to originations, underwriting, and servicing.
-- DBRS Morningstar conducted a telephone operational risk review of LeasePlan and as a result considers LeasePlan to be an acceptable originator and servicer of fleet leases.
-- The high credit quality and historical performance of the collateral.
-- The leased vehicles are typically essential to a customer’s business; therefore, an obligor is likely to affirm such lease in a bankruptcy proceeding.
-- These leases have hell-or-high water clauses and are triple net with no set-off language. The lessee is responsible to pay all taxes, title, and registration charges.
--The transaction assumptions consider DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary Baseline Macroeconomic Scenarios For Rated Sovereigns - September 2022 Update, published on September 19, 2022. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse COVID-19 pandemic scenarios, which were first published in April 2020.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no environmental, social, and governance factors that had a significant or relevant effect on the credit analysis.

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/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (May 17, 2022).

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

The principal methodologies are Rating U.S. Auto Fleet Lease Securitizations (September 23, 2020),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 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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