DBRS Morningstar Confirms Rating on PDRIVE LLC

DBRS, Inc. (DBRS Morningstar) confirmed its rating on the PDRIVE LLC facility at AAA (sf). The confirmation is a result of credit enhancement levels that are sufficient to cover DBRS Morningstar’s expected losses at the current rating level.

The confirmation is based on DBRS Morningstar’s review of the following analytical considerations:
-- Transaction capital structure, current rating, and form and sufficiency of available credit enhancement.
-- The transaction assumptions consider DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary titled “Baseline Macroeconomic Scenarios For Rated Sovereigns,” published on September 8, 2021. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020. The baseline macroeconomic scenarios reflect the view that, although the pandemic remains a risk to the outlook, uncertainty around the macroeconomic effects of the pandemic has gradually receded. Current median forecasts considered in the baseline macroeconomic scenarios incorporate some risks associated with further outbreaks, but remain fairly positive on recovery prospects given expectations of continued fiscal and monetary policy support. The policy response to the coronavirus pandemic may nonetheless bring other risks to the forefront in the coming months and years.
-- The transaction is a warehouse facility that consists entirely of auto loans or auto leases. Currently, the collateral pool comprises 69.5% auto loans and 30.5% auto leases.
-- The credit quality of the collateral pool and historical performance as of August 2021 and DBRS Morningstar's assessment of future performance, including upward revisions to the expected cumulative net loss (CNL) assumptions.
-- Concentration limits based on loan and lease terms, percentage of loans and leases for used vehicles, and minimum weighted average FICO scores of obligors in the pool, among others.
-- The transaction parties’ capabilities with regard to origination, underwriting, and servicing. DBRS Morningstar considers Porsche Financial Services, Inc. to be an acceptable originator and servicer of prime quality auto loans and auto leases.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Notes:
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (May 26, 2021), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

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

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

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