DBRS Morningstar Comments on the Tap Issuance of VCL Master S.A., acting with respect to its Compartment 1

DBRS Ratings GmbH (DBRS Morningstar) acknowledged the tap issuance under the following notes issued by VCL Master S.A., acting with respect to its Compartment 1 (the Issuer or VCL):

-- Series 2010-2, Class A Notes
-- Series 2011-2, Class A Notes
-- Series 2012-2, Class A Notes
-- Series 2012-3, Class A Notes
-- Series 2013-1, Class A Notes
-- Series 2015-1, Class A Notes
-- Series 2017-1, Class A Notes
-- Series 2017-3, Class A Notes
-- Series 2018-1, Class A Notes
-- Series 2020-1, Class A Notes
-- Series 2014-1, Class B Notes
-- Series 2014-3, Class B Notes
-- Series 2018-1, Class B Notes

DBRS Morningstar deems that the tap issuance has no impact on the current AAA (sf) credit ratings on the outstanding Class A Notes or the current AA (high) (sf) credit ratings on the outstanding Class B Notes (together, the notes).

The programme features and the notes’ terms and conditions remain substantially unchanged. Currently, the notes issued by VCL are backed by approximately EUR 2.33 billion of receivables related to motor vehicle lease contracts originated by Volkswagen Leasing GmbH (VWL) in Germany.

The Issuer is a master trust programme established in December 2009, backed by a revolving pool of receivables related to motor vehicle lease contracts originated by VWL to retail and commercial customers in Germany and secured by new and used vehicles. All series of notes are currently in their revolving period, with the exception of the Series 2012-4, Class A Notes, which are in amortization phase. The programme allows for tap-up issuance as well as the issuance of additional series of notes, subject to collateralisation levels and performance requirements being met as specified in the transaction documents, up to the programme maximum of EUR 4.0 billion.

Portfolio stratifications were provided in the latest investor report and the portfolio composition remains within programme standards. DBRS Morningstar has not updated its gross default and recovery assumptions since the last annual review in September 2023.

Since no trigger events outlined in the transaction documents have been breached and overcollateralisation for the Notes is at the required levels, DBRS Morningstar did not perform any cash flow analysis.

Please refer to https://www.dbrsmorningstar.com/issuers/22105 for more information on this Issuer.

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/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (4 July 2023).

Notes:
All figures are in euros unless otherwise noted.

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/baseline-macroeconomic-scenarios-application-to-credit-ratings.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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