DBRS Confirms and Upgrades Ratings on Private Driver 2015-1 UG (haftungsbeschränkt)

DBRS Ratings Limited (DBRS) took the following rating actions on the bonds issued by Private Driver 2015-1 UG
(haftungsbeschränkt) (the Issuer):

-- Class A Notes confirmed at AAA (sf)
-- Class B Notes upgraded to AA (high) (sf) from AA (sf)

The ratings address the timely payment of interest and ultimate repayment of principal by the final legal maturity date in December 2021.

The rating actions follow an annual review of the transaction and are based on the following analytical considerations:

-- Portfolio performance, in terms of delinquencies, defaults and losses, as of the January 2018 payment date.
-- Probability of default (PD), loss given default (LGD) and expected loss assumptions on the remaining receivables.
-- Current available credit enhancement to the notes to cover the expected losses at their respective rating levels.

The Issuer is a securitisation of German auto loans originated and serviced by Volkswagen Bank GmbH. The portfolio
consists of auto loan receivables granted to private individuals and commercial entities to finance the purchase of new and used vehicles. The transaction initially had a nine-month revolving period, which terminated in December 2015.

PORTFOLIO PERFORMANCE
As of January 2018, two-to-three-month arrears represented 0.1% of the outstanding loan balance, which has remained
stable since January 2017. As of January 2018, the 90+ delinquency ratio was 0.2%, stable since January 2017. The
cumulative net loss ratio was 0.1%.

PORTFOLIO ASSUMPTIONS
DBRS updated its base-case PD and LGD assumptions to 1.7% and 43.0%, respectively, based on the current portfolio
composition.

CREDIT ENHANCEMENT
The transaction has a sequential/pro rata amortisation structure whereby all principal payments from the receivables
pay down the Class A Notes until Class A overcollateralisation (OC) reaches its target level of 11.0%. As of the January 2018 payment date, Class A OC was 11.0%, stable from last year, and Class B OC was 7.0%, up from 5.4% last year.

RESERVE FUND
The transaction benefits from a reserve fund of EUR 10.0 million. The reserve fund covers senior fees, Class A and Class B interest and principal losses on the final payment date.

Elavon Financial Services DAC, U.K. Branch acts as the account bank for the transaction. The DBRS private rating of
Elavon Financial Services DAC, U.K. Branch complies with the Minimum Institution Rating, given the rating assigned to the Class A Notes, as described in DBRS's "Legal Criteria for European Structured Finance Transactions" methodology.

Notes:
All figures are in euros unless otherwise noted.

The principal methodology applicable to the ratings is the “Master European Structured Finance Surveillance
Methodology”.

DBRS has applied the principal methodology consistently and conducted a review of the transaction in accordance with
the principal methodology.

A review of the transaction legal documents was not conducted as the legal documents have remained unchanged since
the most recent rating action.

Other methodologies referenced in this transaction are listed at the end of this press release. These may be found on www.dbrs.com at: http://www.dbrs.com/about/methodologies.

For a more detailed discussion of the sovereign risk impact on Structured Finance ratings, please refer to “Appendix C:The Impact of Sovereign Ratings on Other DBRS Credit Ratings” of the “Rating Sovereign Governments” methodology
at: http://dbrs.com/research/319564/rating-sovereign-governments.pdf.

The sources of data and information used for these ratings include investor reports provided by Volkswagen Bank GmbH, and loan-level data provided by the European DataWarehouse GmbH.

DBRS did not rely upon third-party due diligence in order to conduct its analysis.

At the time of the initial rating, DBRS was not supplied with third-party assessments. However, this did not impact the rating analysis.

DBRS considers the data and information available to it for the purposes of providing these ratings to be of satisfactory quality.

DBRS does not audit or independently verify the data or information it receives in connection with the rating process.

The last rating action on this transaction took place on 23 February 2017, when DBRS confirmed its rating on the Class A Notes and DBRS upgraded its rating on the Class B Notes to AA (sf).

Information regarding DBRS ratings, including definitions, policies and methodologies, is available on www.dbrs.com.
To assess the impact of changing the transaction parameters on the rating, DBRS considered the following stress
scenarios, as compared with the parameters used to determine the rating (the “Base Case”):
-- DBRS expected a lifetime base-case PD and LGD for the pool based on a review of the current assets. Adverse changes
to asset performance may cause stresses to base-case assumptions and therefore have a negative effect on credit
ratings.
-- The base-case PD and LGD of the current pool of loans for the Issuer are 1.7% and 43.0%, respectively.
-- The Risk Sensitivity overview below illustrates the ratings expected if the PD and LGD increase by a certain percentage over the base-case assumption. For example, if the LGD increases by 50%, the rating of the Class A Notes would be expected to fall to AA (low) (sf), assuming no change in the PD. If the PD increases by 50%, the rating of the Class A Notes would be expected to fall to AA (low) (sf), assuming no change in the LGD. Furthermore, if both the PD and LGD increase by 50%, the rating of the Class A Notes would be expected to fall to BBB (high) (sf).

Class A Notes Risk Sensitivity:
-- 25% increase in LGD, expected rating of AA (high) (sf)
-- 50% increase in LGD, expected rating of AA (low) (sf)
-- 25% increase in PD, expected rating of AA (high) (sf)
-- 50% increase in PD, expected rating of AA (low) (sf)
-- 25% increase in PD and 25% increase in LGD, expected rating of A (high) (sf)
-- 25% increase in PD and 50% increase in LGD, expected rating of A (high) (sf)
-- 50% increase in PD and 25% increase in LGD, expected rating of A (high) (sf)
-- 50% increase in PD and 50% increase in LGD, expected rating of BBB (high) (sf)

Class B Notes Risk Sensitivity:
-- 25% increase in LGD, expected rating of AA (low) (sf)
-- 50% increase in LGD, expected rating of A (high)(sf)
-- 25% increase in PD, expected rating of AA (low) (sf)
-- 50% increase in PD, expected rating of A (high) (sf)
-- 25% increase in PD and 25% increase in LGD, expected rating of A (high) (sf)
-- 25% increase in PD and 50% increase in LGD, expected rating of BBB (high) (sf)
-- 50% increase in PD and 25% increase in LGD, expected rating of BBB (high) (sf)
-- 50% increase in PD and 50% increase in LGD, expected rating of BBB (sf)

For further information on DBRS historical default rates published by the European Securities and Markets Authority
(“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 and US regulations only.

Lead Analyst: Andrew Lynch, Assistant Vice President
Rating Committee Chair: Vito Natale, Senior Vice President
Initial Rating Date: 27 March 2015

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Registered in England and Wales: No. 7139960.

The rating methodologies used in the analysis of this transaction can be found at:
http://www.dbrs.com/about/methodologies.

-- Legal Criteria for European Structured Finance Transactions
-- Master European Structured Finance Surveillance Methodology
-- Operational Risk Assessment for European Structured Finance Servicers
-- Rating European Consumer and Commercial Asset-Backed Securitisations

A description of how DBRS analyses structured finance transactions and how the methodologies are collectively applied can be found at: http://www.dbrs.com/research/278375.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.