DBRS Finalizes Provisional Ratings on Hertz Vehicle Financing II LP, Series 2018-1

DBRS, Inc. (DBRS) finalized its provisional ratings on the medium-term notes issued by Hertz Vehicle Financing II LP as follows:

-- Series 2018-1, Class A Notes at AAA (sf)
-- Series 2018-1, Class B Notes at A (sf)
-- Series 2018-1, Class C Notes at BBB (sf)
-- Series 2018-1, Class D Notes at BB (sf)

The ratings are based on a review by DBRS of 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 according to the terms under which they have invested. For this transaction, the ratings address the timely payment of interest on a monthly basis and principal by the legal final maturity date.
-- The transaction parties’ capabilities to effectively manage rental car operations and dispose of the fleet to the extent necessary.
-- Collateral credit quality and residual value performance.
-- The legal structure and its consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology, 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 (rated BB (low) with a Negative trend by DBRS) and its affiliates and that the trust 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.

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrs.com.