DBRS Morningstar Confirms Rating on PDRIVE LLC

DBRS, Inc. (DBRS Morningstar) has confirmed its rating on the PDRIVE LLC facility at AAA (sf). The confirmation is a result of credit enhancement levels that are sufficient to cover DBRS Morningstar’s expected losses at the current rating level.

The confirmation is based on DBRS Morningstar’s review of the following analytical considerations:
-- Transaction capital structure, current rating, and form and sufficiency of available credit enhancement.
-- The transaction assumptions consider 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 September 10, 2020. DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which have been regularly updated. The scenarios were last updated on September 10, 2020, and are reflected in DBRS Morningstar’s rating analysis.
-- 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.
--The transaction is a warehouse facility that may consist entirely of auto loans or auto leases. Currently, collateral pool is comprised of 26.3% auto loans and 73.7% auto leases.
-- The credit quality of the collateral pool and historical performance as of September 2020.
-- Performance-related triggers that, if breached, would result in an Early Amortization Event.
-- Concentration limits based on loan and lease terms, percentage of loans and leases for used vehicles, and minimum weighted average FICO scores of obligors in the pool, among others.
-- The transaction parties’ capabilities with regard to origination, underwriting, and servicing. DBRS Morningstar considers Porsche Financial Services, Inc. to be an acceptable originator and servicer of prime quality auto loans and auto leases.

ESG CONSIDERATIONS
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:
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (May 27, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

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 not 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.

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

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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