DBRS Assigns Provisional Ratings to VCL 18

DBRS Ratings Limited (DBRS) has today assigned a AAA (sf) provisional rating and an ‘A’ (high) (sf) provisional rating to the Class A and Class B Notes to be issued by VCL Multi-Compartment S.A. acting for and on behalf of its Compartment VCL 18. The receivables to be securitised consist of leases related to motor vehicles.

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 reserve fund and subordination. Credit enhancement levels are sufficient to support the DBRS projected expected cumulative net loss assumption under various stress scenarios at a AAA (sf) standard for the Class A Notes and a ‘A’ (high) (sf) standard for the Class B Notes issued by VCL Multi-Compartment S.A. acting for and on behalf of its Compartment VCL 18.
• 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 originations, underwriting, servicing, and financial strength.
• The credit quality of the collateral and ability of the Servicer to perform collection activities on the collateral.
• 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.

Note:
All figures are in Euro unless otherwise noted.

The principal methodologies applicable are:
• Rating European Consumer and Commercial Asset-Backed Securitisations.
• Legal Criteria for European Structured Finance Transactions.
• Derivative 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 this rating include performance data relating to the receivables provided by Volkswagen Leasing GmbH. 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.

This rating concerns a newly issued financial instrument. This is the first DBRS rating on this financial instrument.

The full report providing additional analytical detail is available by clicking on the link or by contacting us at info@dbrs.com. 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://dbrs.com/research/260559/linking-document-vcl-18.pdf.

For further information on DBRS 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.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

Initial Lead Analyst: Alexander Garrod
Initial Rating Date: 12 September 2013
Initial Rating Committee Chair: Chuck Weilamann

Last Rating Date: 12 September 2013

Lead Surveillance Analyst: Keith Gorman

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