Morningstar DBRS Assigns Provisional Credit Ratings to Prestige Auto Receivables Trust 2025-1

DBRS, Inc. (Morningstar DBRS) assigned provisional credit ratings to the classes of notes to be issued by Prestige Auto Receivables Trust 2025-1 (PART 2025-1 or the Issuer):

--$33,000,000 Class A-1 Notes at (P) R-1 (high) (sf)
--$65,840,000 Class A-2 Notes at (P) AAA (sf)
--$24,340,000 Class B Notes at (P) AA (high) (sf)
--$41,140,000 Class C Notes at (P) A (high) (sf)
--$28,420,000 Class D Notes at (P) BBB (high) (sf)
--$20,390,000 Class E Notes at (P) BBB (low) (sf)

CREDIT RATING RATIONALE/DESCRIPTION
The provisional credit ratings are based on a review by Morningstar DBRS of the following analytical considerations:

Transaction capital structure, proposed credit ratings, and form and sufficiency of available credit enhancement.
-- Credit enhancement is in the form of subordination, overcollateralization, amounts held in the reserve account, and excess spread. Credit enhancement levels are sufficient to support Morningstar DBRS-projected expected cumulative net loss (CNL) assumptions under various stress scenarios.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the credit ratings address the timely payment of interest on a monthly basis and the ultimate payment of principal by the Legal Final Maturity Date.

The transaction parties' capabilities with regard to originations, underwriting, and servicing.
-- Morningstar DBRS has performed an operational review of Prestige and considers the entity to be an acceptable originator and servicer of subprime auto receivables. Additionally, the transaction has an acceptable backup servicer.
-- The Company's management team has extensive experience. The Company has been lending to the subprime auto sector since 1994 and have considerable experience lending to Chapter 7 and 13 obligors.

The credit quality of the collateral and performance of Prestige's auto loan portfolio.
-- Prestige shared vintage CNL data with Morningstar DBRS broken down by credit grade, payment-to-income ratio, and other buckets.
-- The Company continues to evaluate and adjust its underwriting standards as necessary to target and maintain the credit quality of its loan portfolio.
-- Morningstar DBRS credit rating category loss multiples for each credit rating assigned are within the published criteria.

The Morningstar DBRS CNL assumption is 22.70% based on the expected cutoff date pool composition.
-- The transaction assumptions consider Morningstar DBRS' baseline macroeconomic scenarios for rated sovereign economies, available in its commentary, Baseline Macroeconomic Scenarios for Rated Sovereigns: March 2025 Update, published on March 26, 2025. These baseline macroeconomic scenarios replace Morningstar DBRS' moderate and adverse coronavirus pandemic scenarios, which were first published in April 2020.

The legal structure and expected presence of legal opinions that are expected to address the true sale of the assets to the Issuer, the nonconsolidation of the special-purpose vehicle with Prestige, that the Trust has a valid first-priority security interest in the assets, and the consistency with Morningstar DBRS' Legal Criteria for U.S. Structured Finance.

Morningstar DBRS' credit rating on the Class A-1, Class A-2, Class B, Class C, Class D, and Class E Notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are the related Note Interest and Note Balance for each of the rated notes.

Morningstar DBRS' credit rating does not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations. For example, the related interest on the unpaid Overdue Interest for each of the rated notes.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) https://dbrs.morningstar.com/research/437781.

Notes:
All figures are in US dollars unless otherwise noted.

The principal methodology applicable to the credit ratings is
Rating U.S. Retail Auto Loan Securitizations (August 6, 2024) https://dbrs.morningstar.com/research/437569.

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

The credit rating was initiated at the request of the rated entity.

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

Morningstar DBRS 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.

This is a solicited credit rating.

A provisional credit rating is not a final credit rating with respect to the above-mentioned securities and may change or be different than the final credit rating assigned or may be discontinued. The assignment of the final credit ratings on the above-mentioned securities are subject to receipt by Morningstar DBRS of all data and/or information and final documentation that Morningstar DBRS deems necessary to finalize the credit ratings.

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

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA
Tel. +1 212 806-3277

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

Rating U.S. Structured Finance Transactions (March 10, 2025),
https://dbrs.morningstar.com/research/449616

Operational Risk Assessment for U.S. ABS Originators and Servicers (March 26, 2025),
https://dbrs.morningstar.com/research/450709

Legal Criteria for U.S. Structured Finance (December 3, 2024),
https://dbrs.morningstar.com/research/444064

A description of how Morningstar DBRS analyses structured finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/417279.

For more information on this credit or on this industry, visit dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.