DBRS Upgrades GM Financial Automobile Leasing Trust 2016-PP5

DBRS, Inc. (DBRS) upgraded the rating on the 2016-PP5 Exchange Note issued by GM Financial Automobile Leasing Trust 2016-PP5 to AAA (sf) from AA (sf).

RATING RATIONALE/DESCRIPTION
The rating rationale includes the following key analytical considerations:
(1) Transaction capital structure, current ratings and form and sufficiency of available credit enhancement.
(2) The transaction parties’ capabilities with regard to origination, underwriting and servicing.
(3) The credit quality of the collateral pool and historical performance as of January 2019.
-- The transaction is a securitization of U.S. auto leases with a solitary class of rated securities. The deal benefits from credit enhancement consisting of overcollateralization and a reserve account. As of January 2019, overcollateralization was at its target 13% of original collateral balance and the reserve account was fully funded to its required level of $2,778,020. The Indenture Note Balance is $147,548,800. The Aggregate Securitization Value of the collateral is $219,777,309. Delinquencies aged 30+ days are 1.95% and delinquencies aged 60+ days are 0.56%. Cumulative credit losses are approximately $1,038,330. The residual gain on returned vehicles is $15,264,059.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies & Criteria.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS did not have access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

This rating is endorsed by DBRS Ratings Limited for use in the European Union. The following additional regulatory disclosures apply to endorsed ratings:

The last rating action on this transaction took place on February 23, 2018, when the rating of the transaction was upgraded to AA (sf) from A (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.

Lead Analyst: Jayce Fox, Senior Vice President, U.S. ABS Surveillance – Global Structured Finance.
Rating Committee Chair: Christopher D'Onofrio, Managing Director, U.S. ABS - Global Structured Finance.
Initial Rating Date: October 11, 2016.

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

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