DBRS Morningstar Confirms Credit Ratings on Six Avis Budget Rental Car Funding (AESOP) LLC Transactions

DBRS, Inc. (DBRS Morningstar) confirmed its credit ratings on 16 securities issued by six Avis Budget Rental Car Funding (AESOP) LLC transactions as follows:

-- Series 2015-3, Variable Funding Rental Car Asset Backed Notes at A (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 2019-2, 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 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 2023 Update,” published on September 28, 2023. 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 consistently strong, with residual gains well over 100% in recent months.

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

ENVIRONMENTAL, SOCIAL, 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/416784 (July 4, 2023).

Notes:
The principal methodology applicable to the credit ratings is DBRS Morningstar Master U.S. ABS Surveillance (October 22, 2023), https://www.dbrsmorningstar.com/research/422279.

Other methodologies referenced in this transaction are listed at the end of this press release.

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 credit ratings were initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for these credit rating actions.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

These are solicited credit ratings.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

DBRS, Inc.
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New York, NY 10005 USA
Tel. +1 212 806-3277

The credit rating methodologies used in the analysis of these transactions can be found at: https://www.dbrsmorningstar.com/about/methodologies.

-- Operational Risk Assessment for U.S. ABS Servicers (July 20, 2023) https://www.dbrsmorningstar.com/research/417415

-- Operational Risk Assessment for U.S. ABS Originators (July 20, 2023) https://www.dbrsmorningstar.com/research/417416

-- Interest Rate Stresses for U.S. Structured Finance Transactions (June 9, 2023) https://www.dbrsmorningstar.com/research/415687

-- Legal Criteria for U.S. Structured Finance (December 7, 2022) https://www.dbrsmorningstar.com/research/407008

-- Rating U.S. Structured Finance Transactions (October 30, 2023) https://www.dbrsmorningstar.com/research/422592

-- Rating U.S. Rental Car Securitizations (September 25, 2023) https://www.dbrsmorningstar.com/research/421028

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