Globaldrive Germany Retail Lease VFN 1 B.V. rated AAA (sf)

DBRS Ratings Limited (DBRS) has today assigned a AAA (sf) rating to the Class A-1 and Class A-2 notes issued by Globaldrive Germany Retail Lease VFN 1 B.V. (GGRLVFN). GGRLVFN issued three classes of Class A notes and a Class B note. DBRS rates Class A-1 and Class A-2 notes only (the maximum principal amount, EUR 500 million). The collateral underlying the issuance is backed by two different asset types: fixed rate auto loans and fixed rate auto leases. The loans and leases were originated in Germany by FCE Germany, a branch of FCE Bank plc.

For this transaction, the rating addresses the payment of timely interest on a monthly basis and the payment of principal by the legal final maturity date. Interest payments on the notes are made monthly beginning in December 2010.

The ratings are based upon the following considerations:

•Transaction structure, the form and sufficiency of available credit enhancement. The support for the rated Class A-1 and A-2 is a dynamic level of credit enhancement support from the Class B and the reserve account liquidity component. The liquidity reserve was sized to cover six months' worth of interest expense

•The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms in which they have invested. DBRS credit analysis was performed on a pool level basis. Historical performance was reviewed for each asset type including; interest rates, loan-to-value history, delinquency data, residual analysis, recoveries, and static pool analysis of defaults. A cash flow analysis was also performed which applied various stresses to defaults, timing of defaults and prepayments.

•The transaction parties’ financial strength and capabilities to perform their respective duties, and the quality of origination, underwriting and servicing practices.

•Soundness of the legal structure and presence of legal opinions which address the true sale of the assets to the special purpose vehicle, as well as consistency with DBRS Legal Criteria for European Structured Finance Transactions.

Note:
All figures are in Euro (€) unless otherwise noted.

The principal methodologies applicable are Rating European Consumer Asset-Backed Securitisations dated 30 August 2010, and the DBRS Legal Criteria for European Structured Finance Transactions and Addenda dated 27 August 2010, which can be found on our website under Methodologies. This is a newly created financial instrument and this is the first DBRS rating on this financial instrument.

The sources of information used for this rating include FCE Germany. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

For additional information on DBRS European ABS ratings, please refer to the linking document located below.