Morningstar DBRS Upgrades and Confirms Credit Ratings on Auto1Car Funding S.a.r.l acting with respect to its Compartment FinanceHero 2024-1

DBRS Ratings GmbH (Morningstar DBRS) took the following credit rating action on the notes (the Rated Notes) issued by Auto1Car Funding S.a.r.l acting with respect to its Compartment FinanceHero 2024-1 (the Issuer):

-- Class A confirmed at AAA (sf)
-- Class B upgraded to AA (high) (sf) from AA (low) (sf)
-- Class C upgraded to AA (low) (sf) from A (low) (sf)
-- Class D upgraded to BBB (high) (sf) from BBB (low) (sf)

The credit rating actions follow an annual review of the transaction and are based on the following analytical considerations:
-- Portfolio performance, in terms of delinquencies and defaults, as of the July 2026 payment date.
-- Probability of default (PD), loss given default (LGD), and expected loss assumptions on the remaining receivables, and
-- Current available credit enhancement to the Rated Notes to cover the expected losses at their respective credit rating levels.

The transaction is a static securitisation of auto loan receivables related to auto loan contracts granted to private individuals residing in Germany for the purchase of used cars, originated and serviced by Autohero GmbH (Autohero), an online-based used vehicle dealer and non-captive lender. The transaction closed in July 2024 with an initial portfolio balance of EUR 223.0 million. The Issuer is incorporated under the laws of the Grand Duchy of Luxembourg.

PORTFOLIO PERFORMANCE
As of the July 2026 payment date, loans that were 30 to 60 days and 60 to 90 days delinquent represented 2.0% and 1.3% of the portfolio balance, respectively, while loans more than 90 days delinquent amounted to 1.0%. The cumulative default ratio amounted to 3.8% of the initial portfolio balance, with cumulative recoveries of 27.2% to date.

PORTFOLIO ASSUMPTIONS AND KEY DRIVERS
Morningstar DBRS received updated historical vintage data from the originator in the course of its latest rated securitisations, and conducted a loan-by-loan analysis of the remaining pool of receivables. Morningstar DBRS conducted a loan-by-loan analysis of the remaining pool of receivables and updated its base case PD and LGD assumptions to 8.4% and 57.0%, respectively, from 6.0% and 60.0%.

CREDIT ENHANCEMENT
The subordination of the respective junior notes provides credit enhancement to the Rated Notes. As of the July 2026 payment date, credit enhancement available to the Class A, Class B, Class C, and Class D notes increased to 45.9%, 34.8%, 24.8%, and 16.9%, respectively, up from 27.3%, 20.0%, 13.5%, and 7.9%, respectively.

The Class A Notes benefit from a liquidity reserve, which covers senior fees, net swap payments, and interest payment shortfalls on the Class A Notes throughout the life of the transaction. AUTO1 Group Operations SE has initially funded the general reserve, which will amortise to a target defined as 1.5% of the outstanding balance of the Class A Notes and floored at EUR 300,000. The excess funds over the target reserve fund balance will be released in the interest priority of payments in each period that the reserve amortises. As of the July 2026 payment date, the Class A Notes liquidity reserve was at its target balance of EUR 0.88 million.

Once the Class A Notes are fully redeemed the remaining Class A liquidity reserve amount can be used to sequentially fund the Class B, Class C, and Class D Notes liquidity reserves. The Class B Notes, Class C Notes, and Class D Notes liquidity reserves cover senior fees, net swap payments, and interest payment shortfalls on the respective class of Notes. The liquidity reserves have a target equal to 1.0% of their respective outstanding Notes balance. The excess funds over the target reserve fund balances are available through the interest priority of payments.

The transaction also benefits from a fully funded commingling reserve equal to the amount of scheduled collections and expected prepayments for the collection period immediately following the cut-off date immediately preceding the relevant payment date. This reserve will amortise throughout the life of the transaction and released amounts will be credited back to the Seller outside the priority of payments.

Citibank Europe plc, Germany Branch acts as the account bank for the transaction. Based on Morningstar DBRS' private credit rating on Citibank Europe plc, Germany Branch, the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, Morningstar DBRS considers the risk arising from the exposure to the account bank to be consistent with the credit ratings assigned to the Rated Notes, as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology.

Citibank Europe plc acts as the swap counterparty for the transaction. Morningstar DBRS' Long-Term Issuer Rating of AA (low) on Citibank Europe plc is consistent with the first credit rating threshold as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology.

Morningstar DBRS' credit ratings on the notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transaction press release at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of defaults to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the term under which a long-term obligation has been issued.

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 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 at https://dbrs.morningstar.com/research/485522.

Morningstar DBRS analysed the transaction structure in Intex DealMaker.

Notes:
All figures are in euros unless otherwise noted.

The principal methodologies applicable to the credit ratings are the "Master European and Asia-Pacific Structured Finance Surveillance Methodology" (10 March 2026), https://dbrs.morningstar.com/research/476049.

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

Morningstar DBRS has applied the principal methodology consistently and conducted a review of the transaction in accordance with the principal methodology.

A review of the transaction legal documents was not conducted as the legal documents have remained unchanged since the most recent credit rating action.

For a more detailed discussion of the sovereign risk impact on Structured Finance credit ratings, please refer to "Appendix C: The Impact of Sovereign Ratings on Other DBRS Morningstar Credit Ratings" of the "Global Methodology for Rating Sovereign Governments" at: https://dbrs.morningstar.com/research/484620.

The sources of data and information used for these credit ratings include transaction reports provided by Citibank, N.A. London Branch (the trustee) and loan-level data provided by the European DataWarehouse GmbH. Additionally, Morningstar DBRS was also provided with updated historical performance data from the originator and its agents as follows:
-- Cumulative static credit default data;
-- Cumulative static recovery data;
-- Dynamic credit default, delinquency, and prepayment data.

Morningstar DBRS did not rely upon third-party due diligence in order to conduct its analysis.

At the time of the initial credit ratings, Morningstar DBRS was supplied with third-party assessments. However, this did not impact the credit rating analysis.

Morningstar DBRS considers the data and information available to it for the purposes of providing these credit ratings to be of satisfactory quality.

Morningstar DBRS does not audit or independently verify the data or information it receives in connection with the credit rating process.

Morningstar DBRS expects Structured Finance issuers and originators of Structured Finance products to make all relevant information regarding these products available to investors to conduct their own analyses.

The last credit rating action on this transaction took place on 25 July 2025, when Morningstar DBRS confirmed its credit ratings on the Class A, Class B, Class C, and Class D Notes at AAA (sf), AA (low) (sf), A (low) (sf), and BBB (low) (sf), respectively.

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on https://dbrs.morningstar.com.

Sensitivity Analysis: To assess the impact of changing the transaction parameters on the credit ratings, Morningstar DBRS considered the following stress scenarios as compared with the parameters used to determine the credit ratings (the base case):

-- Morningstar DBRS expected a lifetime base case PD and LGD for the pool based on a review of the current assets. Adverse changes to asset performance may cause stresses to base case assumptions and therefore have a negative effect on credit ratings.
-- The base case PD and LGD of the current pool of loans for the Issuer are 8.4% and 57.0%, respectively.

Class A Risk Sensitivity:
-- 25% increase in LGD, expected credit rating of AAA (sf)
-- 50% increase in LGD, expected credit rating of AA (low) (sf)
-- 25% increase in PD, expected credit rating of AAA (sf)
-- 50% increase in PD, expected credit rating of AAA (sf)
-- 25% increase in PD and 25% increase in LGD, expected credit rating of AAA (sf)
-- 25% increase in PD and 50% increase in LGD, expected credit rating of A (high) (sf)
-- 50% increase in PD and 25% increase in LGD, expected credit rating of AA (high) (sf)
-- 50% increase in PD and 50% increase in LGD, expected credit rating of A (sf)

Class B Risk Sensitivity:
-- 25% increase in LGD, expected credit rating of AA (high) (sf)
-- 50% increase in LGD, expected credit rating of A (low) (sf)
-- 25% increase in PD, expected credit rating of AA (high) (sf)
-- 50% increase in PD, expected credit rating of AA (sf)
-- 25% increase in PD and 25% increase in LGD, expected credit rating of AA (low) (sf)
-- 25% increase in PD and 50% increase in LGD, expected credit rating of BBB (high) (sf)
-- 50% increase in PD and 25% increase in LGD, expected credit rating of A (high) (sf)
-- 50% increase in PD and 50% increase in LGD, expected credit rating of BBB (sf)

Class C Risk Sensitivity:
-- 25% increase in LGD, expected credit rating of A (sf)
-- 50% increase in LGD, expected credit rating of BBB (sf)
-- 25% increase in PD, expected credit rating of AA (low) (sf)
-- 50% increase in PD, expected credit rating of A (sf)
-- 25% increase in PD and 25% increase in LGD, expected credit rating of A (low) (sf)
-- 25% increase in PD and 50% increase in LGD, expected credit rating of BBB (low) (sf)
-- 50% increase in PD and 25% increase in LGD, expected credit rating of BBB (high) (sf)
-- 50% increase in PD and 50% increase in LGD, expected credit rating of BB (high) (sf)

Class D Risk Sensitivity:
-- 25% increase in LGD, expected credit rating of BBB (low) (sf)
-- 50% increase in LGD, expected credit rating of BB (sf)
-- 25% increase in PD, expected credit rating of BBB (high) (sf)
-- 50% increase in PD, expected credit rating of BBB (sf)
-- 25% increase in PD and 25% increase in LGD, expected credit rating of BB (high) (sf)
-- 25% increase in PD and 50% increase in LGD, expected credit rating of BB (low) (sf)
-- 50% increase in PD and 25% increase in LGD, expected credit rating of BB (high) (sf)
-- 50% increase in PD and 50% increase in LGD, expected credit rating of B (sf)

For further information on Morningstar DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://registers.esma.europa.eu/cerep-publication. For further information on Morningstar DBRS historical default rates published by the Financial Conduct Authority (FCA) in a central repository, see https://data.fca.org.uk/#/ceres/craStats.

These credit ratings are endorsed by DBRS Ratings Limited for use in the United Kingdom.

Lead Analyst: Daniel Rakhamimov, Assistant Vice President
Rating Committee Chair: Mark Wilder, Senior Vice President
Initial Rating Date: 9 July 2024

DBRS Ratings GmbH
Neue Mainzer Straße 75
60311 Frankfurt am Main Deutschland
Tel. +49 (69) 8088 3500
Geschäftsführung: Detlef Scholz, Marta Zurita Bermejo
Amtsgericht Frankfurt am Main, HRB 110259

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

-- Master European and Asia-Pacific Structured Finance Surveillance Methodology (10 March 2026), https://dbrs.morningstar.com/research/476049.
-- Rating European and Asia-Pacific Consumer and Commercial Asset-Backed Securitisations (16 March 2026), https://dbrs.morningstar.com/research/476299.
-- Rating European and Asia-Pacific Structured Finance Transactions Methodology (19 June 2026), https://dbrs.morningstar.com/research/483552.
-- Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions (29 May 2026), https://dbrs.morningstar.com/research/481817.
-- Operational Risk Assessment for European and Asia-Pacific Structured Finance Originators and Servicers (10 March 2026), https://dbrs.morningstar.com/research/476050.
-- Interest Rate and Currency Stresses for Global Structured Finance Transactions (26 January 2026),
https://dbrs.morningstar.com/research/472333.
-- Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (20 July 2026), https://dbrs.morningstar.com/research/485522.

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/439604.

For more information on this credit or on this industry, visit dbrs.morningstar.com or contact us at [email protected].