Morningstar DBRS Assigns Provisional Credit Ratings to Drive Auto Receivables Trust 2025-1

DBRS, Inc. (Morningstar DBRS) assigned provisional credit ratings to the classes of notes to be issued by Drive Auto Receivables Trust 2025-1 (the Issuer) as follows:

-- $146,000,000 Class A-1 Notes at (P) R-1 (high) (sf)
-- $368,580,000 Class A-2 Notes at (P) AAA (sf)
-- $231,250,000 Class A-3 Notes at (P) AAA (sf)
-- $175,040,000 Class B Notes at (P) AA (sf)
-- $144,600,000 Class C Notes at (P) A (sf)
-- $190,260,000 Class D Notes at (P) BBB (sf)

CREDIT RATING RATIONALE/DESCRIPTION

The provisional credit ratings are based on Morningstar DBRS' review of the following analytical considerations:

(1) Transaction capital structure, proposed ratings, and form and sufficiency of available credit enhancement.
-- Credit enhancement is in the form of OC, subordination, amounts held in the reserve account, and available excess spread. Credit enhancement is sufficient to support the Morningstar DBRS-projected cumulative net loss (CNL) assumption under various stress scenarios.

(2) 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 the payment of principal by the legal final maturity date.

(3) The credit quality of the collateral and performance of Santander Consumer USA Inc.'s (SC or the Company) auto loan portfolio.
-- The pool includes approximately 71.90% of used and 28.10% of new auto loans.
-- The loans in the pool have a weighted-average FICO score of 586 and a WA annual percentage rate (APR) of 19.81%.
-- Approximately 51% of the collateral pool is comprised of vehicles with mileage less than or equal to 35,000 miles.

(4) The Morningstar DBRS CNL assumption is 19.70% based on the cut-off date pool composition.

(5) The capabilities of SC and Santander Bank, N.A. (SBNA) with regard to originations, underwriting, and servicing.
-- Morningstar DBRS received a presentation from the Company and as a result considers the entity to be an acceptable originator and servicer of subprime automobile loan contracts.

(6) The consistent operational history of SC and the strength of the overall Company and its management team.
-- The SC senior management team has considerable experience and a successful track record within the auto finance industry.
-- SC's track record and history issuing ABS transactions under the Drive Auto Receivables Trust, Santander Drive Auto Receivables Trust, Santander Retail Auto Lease Trust, and Santander Consumer Auto Receivables Trust.
-- Morningstar DBRS used the static pool approach to generate static pool projected losses.
-- The quality and consistency of historical static pool data and performance of the auto loan portfolio.

(7) The transaction assumptions consider Morningstar DBRS' baseline macroeconomic scenarios for rated sovereign economies, available in its commentary, Baseline Macroeconomic Scenarios For Rated Sovereigns: March 2025 Update, published on March 26, 2025. These baseline macroeconomic scenarios replace Morningstar DBRS' moderate and adverse coronavirus pandemic scenarios, which were first published in April 2020.

(8) The legal structure and presence of legal opinions that are expected to address the true sale of the assets to the Issuer, the nonconsolidation of the special-purpose vehicle with SC, that the Trust has a valid first-priority security interest in the assets, and the consistency with Morningstar DBRS' Legal Criteria for U.S. Structured Finance.

The ratings on the Class A Notes reflect 52.00% of initial hard credit enhancement provided by the subordinated Notes in the pool, the reserve account (1.00%), and overcollateralization (17.50%). The ratings on the Class B, C, and D Notes reflect 40.50%, 31.00% and 18.50% of initial hard credit enhancement, respectively. Additional credit support may be provided from excess spread available in the structure.

Morningstar DBRS' credit rating on Class A, Class B, Class C and Class D Notes addresses the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations for each of the rated notes are the related Noteholders' Monthly Accrued Interest and Note Balance.

Morningstar DBRS' credit rating does not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) https://dbrs.morningstar.com/research/437781.

Notes:
All figures are in US dollars unless otherwise noted.

The principal methodology applicable to the credit ratings is Rating U.S. Retail Auto Loan Securitizations (August 06, 2024)
https://dbrs.morningstar.com/research/437569.

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

A provisional credit rating is not a final credit rating with respect to the above-mentioned securities and may change or be different than the final credit rating assigned or may be discontinued. The assignment of the final credit ratings on the above-mentioned securities are subject to receipt by Morningstar DBRS of all data and/or information and final documentation that Morningstar DBRS deems necessary to finalize the credit ratings.

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

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA
Tel. +1 212 806-3277

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

Rating U.S. Structured Finance Transactions (March 10, 2025)
https://dbrs.morningstar.com/research/449616

Operational Risk Assessment for U.S. ABS Originators and Servicers (March 26, 2025)
https://dbrs.morningstar.com/research/450709/operational-risk-assessment-for-us-abs-servicers

Legal Criteria for U.S. Structured Finance (December 3, 2024)
https://dbrs.morningstar.com/research/444064

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