DBRS Takes Rating Actions on Hertz Vehicle Financing II LP Series 2013-A and Series 2013-B

DBRS, Inc. (DBRS) took the following rating actions on the Variable Funding Rental Car Asset Backed Notes, Series 2013-A and Series 2013-B, by Hertz Vehicle Financing II LP (the Issuer):

-- Series 2013-A, Class A Notes upgraded to AAA (sf) from A (sf)
-- Series 2013-A, Class B Notes upgraded to AA (sf) from BBB (sf)
-- Series 2013-A, Class C Notes assigned a new rating of A (sf)
-- Series 2013-A, Class D Notes assigned a new rating of BBB (sf)

-- Series 2013-B, Class A Notes upgraded to AAA (sf) from A (sf)
-- Series 2013-B, Class B Notes upgraded to AA (sf) from BBB (sf)
-- Series 2013-B, Class C Notes assigned a new rating of A (sf)
-- Series 2013-B, Class D Notes assigned a new rating of BBB (sf)

The ratings are based on a review by DBRS of certain amendments to the Series 2013-A and Series 2013-B Supplements and the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- Credit enhancement in the transaction is dynamic depending on the composition of the vehicles in the fleet and certain market value tests.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors is determined according to the terms under which they have invested. For this transaction, the rating addresses the payment of timely interest on a monthly basis and principal by the legal final maturity date.
-- The transaction parties’ capabilities to effectively manage rental car operations and disposition of the fleet to the extent necessary.
-- Collateral credit quality and residual value performance.
-- The legal structure and its consistency with the DBRS methodology, “Legal Criteria for U.S. Structured Finance,” and the presence of legal opinions (to be provided) that address the treatment of the operating lease as a true lease, the non-consolidation of the special-purpose vehicles with the Hertz Corporation and its affiliates, as well as that the Issuer has a valid first-priority security interest in the assets.

Notes:
The principal methodology is Rating U.S. Rental Car Securitizations, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.