DBRS Assigns Ratings to the term notes issued by Consumer Auto Receivables Finance Limited

DBRS, Inc. (DBRS) has today assigned the following ratings to the term notes (collectively, the “Notes”) issued by Consumer Auto Receivables Finance Limited:

-- €25,000,000 Class A Notes rated AAA (sf)
-- €30,100,000 Class B Notes rated AAA (sf)
-- €9,900,000 Class C Notes rated AA (sf)
-- €5,700,000 Class D Notes rated ‘A’ (sf)
-- €2,600,000 Class E Notes rated BBB (sf)
-- €2,500,000 Class F Notes rated BB (sf)

The ratings are based upon review by DBRS of the following analytical considerations:
• Transaction capital structure;
• Credit quality of the collateral and sufficiency of credit enhancement in the form of a liquidity cash reserve, subordination and overcollateralization. Credit enhancement levels are sufficient to support DBRS projected expected cumulative net loss (CNL) assumption under various stress scenarios at the respective targeted rating standard for each class of the Notes;
• The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms in which they have invested;
• The transaction parties’ capabilities with respect to servicing and financial strength including ability of the Servicer to manage collections activities on the collateral; and
• The legal structure and presence of legal opinion addressing the assignment of the assets to the Issuer. DBRS has reviewed the transaction documents and the legal opinion for consistency with the DBRS Legal Criteria for European Structured Finance Transactions.

The Notes are secured by a portfolio of performing (up to 90 days delinquent at cut-off date) consumer and commercial auto and equipment leases as well as unsecured personal loans originated in Ireland (the “Receivables”). The Receivables were originated primarily under the hire purchase and lease contracts as well as unsecured personal installment loan contracts. The final maturity for the Class A Notes is in April 2014. The final maturity for all other classes of the Notes is in December 2019. Deutsche Bank AG, London Branch serves as Cash Manager, Principal Paying Agent and Agent Bank for the transaction.

Note:
All figures are in euros unless otherwise noted.

The principal methodologies applicable are:
• European Consumer and Commercial Asset-Backed Securitisations
• Legal Criteria for European Structured Finance Transactions
• Operational Risk Assessment for European structured Finance Servicers
• Unified Interest Rate Model Methodology for European Securitisations

These can be found on dbrs.com under Methodologies. For a more detailed discussion of sovereign risk impact on Structured Finance ratings, please refer to DBRS commentary “The Effect of Sovereign Risk on Securitisations in the Euro Area”.

The sources of information used for these ratings include performance data relating to the Receivables provided by Consumer Auto Receivables Finance Limited. DBRS considers the information available to it for the purposes of providing these ratings was of satisfactory quality.

These are the first DBRS ratings on these financial instruments.

These are newly created financial instruments.

For additional information on these ratings, please see the linking document.

The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link or by contacting us at info@dbrs.com.

These credit ratings have been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU.

These ratings are endorsed by DBRS Ratings Limited for use in the European Union.

Lead Analyst: Sergey Moiseenko
Rating Committee Chair: Chuck Weilamann
Initial Rating Date: April 10, 2013