DBRS Assigns Ratings to the Senior Notes Issued by CarFin Finance International Limited

DBRS, Inc. (DBRS) has assigned an ‘A’ (sf) rating to the Senior Notes issued by CarFin Finance International Limited (the “Issuer”). The securitisation involves certain Avis Europe subsidiaries as lessees and relates to rental cars operated by these Avis Europe subsidiaries in Germany, Italy, and Spain. The assets supporting the German and Spanish portion of the transaction consist of certain receivables and vehicles, and in these jurisdictions the Issuer will benefit from a security interest in the underlying vehicles. The Italian portion of the financing relies on a dedicated financing structure that looks to ring-fence the revenues of the Italian special purpose vehicle.

The ratings are based upon review by DBRS of the following analytical considerations:

• Transaction capital structure and form and sufficiency of available credit enhancement.
• Relevant credit enhancement in the form of a letter of credit and subordination. Credit enhancement levels are sufficient to support a liquidation of the rental fleet under various stress assumptions at an ‘A’ (sf) standard for the Senior Notes.
• The transaction parties’ financial strength and capabilities with respect to managing rental car operations.
• The legal structure and presence of legal opinions addressing the assignment of the assets to the Issuer and the consistency with the DBRS Legal Criteria for European Structured Finance Transactions.

The transaction originally closed in March 2013 and will revolve for approximately three years followed by a nine month scheduled amortisation period.

Credit Agricole Corporate and Investment Bank acted as arranger for the transaction.

Notes:
All figures are in Euros unless otherwise noted.

The principal methodologies applicable are:
• Rating European Consumer and Commercial Asset-Backed Securitisations.
• Legal Criteria for European Structured Finance Transactions.
• Operational Risk Assessment for European Structured Finance Servicers.
• Master European Structured Finance Surveillance Methodology.
• Rating U.S. Rental Car Securitizations.

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 this rating include monthly investor reports and certain rental fleet information provided by Avis Budget EMEA Limited. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance. The extent of any factual investigation or independent verification depends on facts and circumstances.

DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

This rating concerns a newly issued financial instrument.

This is the first DBRS rating on this financial instrument.

Information regarding DBRS ratings, including definitions, policies and methodologies are available on www.dbrs.com.

For additional information on this rating, please see the linking document located at http://www.dbrs.com/research/259928/linking-document-carfin-finance-international-limited.pdf

For further information on DBRS’s historic default rates published by the European Securities and Markets Administration (“ESMA”) in a central repository see http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

This credit rating has been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU.

Lead Analyst: Michael Babick
Initial Rating Date: 14 August 2013
Initial Rating Committee Chair: Chuck Weilamann
Lead Surveillance Analyst: Keith Gorman

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