The rating relates to a securitization of
The rating rationale for the confirmation of the rating includes the following key analytical considerations:
Transaction capital structure, current rating, and form and sufficiency of available credit enhancement.
The transaction is a securitization of rental car receivables generated by rental car operations in
The analysis considers DBRS Morningstar's set of macroeconomic scenarios for select economies related to the Coronavirus Disease (COVID-19), available in its commentary 'Global Macroeconomic Scenarios: September Update,' published on
The assumptions consider the moderate macroeconomic scenario outlined in the commentary, with the moderate scenario serving as the primary anchor for the current rating. The moderate scenario remains predicated on a more rapid return of confidence and a steady recovery heading into 2021.
In response to the coronavirus pandemic, the Company and Sponsor have aggressively taken all available measures to right-size the fleet given the present constraints, including canceling a substantial number of previously ordered vehicles and have aggressively reduced employee headcount and cut nonessential expenses.
In addition, the majority of the fleet are program vehicles, reducing exposure to used vehicle value volatility and potential disruption of used vehicle disposition channels if mandatory business shutdowns were to be put in place again.
The transaction parties' capabilities with regard to managing rental car operations.
The credit quality of the collateral pool and historical performance.
DBRS Morningstar confirmed the rating of Avis at B with a Negative trend on
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at https://www.dbrsmorningstar.com/research/357792.
Notes:
All figures are in
The principal methodology is DBRS Morningstar Master
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883
For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.
For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.
The rated entity or its related entities did 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.
This rating is endorsed by
The last rating action on these transactions took place on
For further information on DBRS Morningstar historical default rates published by the
Lead Analyst:
Rating Committee Chair:
Initial Rating Date:
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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Ratings
Date Issued Debt Rated Action Rating Trend Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
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03-Nov-20 Senior Notes Confirmed A (sf) -- USE
03-Nov-20 Senior Notes Disc.-W/drwn Discontinued -- USE
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