DBRS Morningstar Confirms Ratings on Hertz Vehicle Financing III LLC, Series 2021-1 and Series 2021-2

DBRS, Inc. (DBRS Morningstar) confirmed the ratings on eight securities issued by two Hertz Vehicle Financing III LLC transactions:

-- Series 2021-1, Class A Notes at AAA (sf)
-- Series 2021-1, Class B Notes at A (sf)
-- Series 2021-1, Class C Notes at BBB (sf)
-- Series 2021-1, Class D Notes at BB (sf)
-- Series 2021-2, Class A Notes at AAA (sf)
-- Series 2021-2, Class B Notes at A (sf)
-- Series 2021-2, Class C Notes at BBB (sf)
-- Series 2021-2, Class D Notes at BB (sf)

The confirmations are based on the following analytical considerations:

-- 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 Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020.

-- The fleet mix remains strong, with a high portion of vehicles from investment-grade manufacturers.

-- Gains above book value remain strong, with residual gains well over 100% in recent months.

-- The pool is in compliance with all concentration limits.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/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 (May 17, 2022).

Notes:
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (November 8, 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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