DBRS Assigns AAA (sf) to Liquidity Agreement Supporting Pool Numbers 362 and 363 within Old Line Funding, LLC

DBRS, Inc. (DBRS) assigned AAA (sf) ratings to the Liquidity Agreement Supporting Pool Number 362 and the Liquidity Agreement Supporting Pool Number 363, dated as of May 9, 2018, by and among Old Line Funding, LLC, a Delaware limited liability company, as Issuer, and Royal Bank of Canada (rated AA with a Positive trend by DBRS) as Purchaser, Liquidity Agent and Agent. The ratings for the liquidity agreements will support Old Line Funding, LLC.

The ratings assume that the liquidity agreements have been invoked, and as such, the Purchaser is the investor of the notes secured by a revolving pool of automobile loan or lease receivables.

The ratings address the timely payment of interest and the ultimate payment of principal.

Consistent with both the DBRS “Rating U.S. Auto Lease Securitizations” and the “Rating U.S. Retail Auto Loan Securitizations” methodologies, and as part of the operational risk review of an originator and servicer, DBRS typically performs an on-site visit or calls the originator and servicer. For this transaction, DBRS was asked to provide the rating by a Committed Purchaser, Royal Bank of Canada, not the servicer or any affiliate. This resulted in no access to the company; consequently, no on-site review was conducted by DBRS. DBRS deems the operational capacity of the company to be acceptable, with potential risks related to not conducting an on-site review mitigated by a number of factors, including the following:

(1) The company’s parent is rated BBB (high) with a Stable trend by DBRS.

(2) The company has sponsored and serviced numerous securitizations of auto loans and leases supported by its own originated collateral. DBRS deems the company to be an experienced originator and servicer, which is demonstrated by strong performance on its outstanding transactions.

The facility includes derivative counterparties, some of which may have initial ratings below the level of A (high) set forth in the DBRS “Legal Criteria for U.S. Structured Finance” methodology. However, the facility contains downgrade and collateralization provisions relating to such hedge counterparties, and DBRS believes the associated risk is consistent with the assigned ratings on the individual facilities.

Notes:
The principal methodologies are Asset-Backed Commercial Paper Criteria Report: U.S. ABCP Conduits and Rating U.S. Auto Lease 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.

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