KBRA Assigns Preliminary Ratings to Driver UK Multi-Compartment S.A., Compartment Driver UK nine
August 29 2024 - 5:54AM
Business Wire
KBRA UK (KBRA) assigns preliminary ratings to two classes of
notes issued by Driver UK Multi-Compartment S.A., acting for and on
behalf of its Compartment Driver UK nine (Driver UK 9), a United
Kingdom auto loan receivables ABS transaction. Credit enhancement
on the notes is comprised of overcollateralisation, subordination,
a cash reserve account and excess spread.
Driver UK 9 represents the latest public securitisation for
Volkswagen Financial Services AG’s (VWFS) UK subsidiary Volkswagen
Financial Services (UK) Limited (VWFS (UK)) under the Driver
securitisation platform. VWFS has been securitising its assets,
including hire purchase contract receivables, auto loan receivables
and auto lease receivables since 1996 and since 2002 for UK
receivables.
Driver UK 9 is expected to issue Class A notes and Class B notes
and a subordinated loan facility collateralised by a revolving pool
of Personal Contract Purchases (PCP), Hire Purchase Contracts (HP)
and Lease Purchase Agreements (LP). PCPs are amortising contracts
with an option for the customer to make a final balloon payment at
maturity and take ownership of the vehicle or return the vehicle to
VWFS (UK) in lieu of the final balloon payment. HPs are fully
amortising hire purchase contracts with no balloon payment and LPs
are fixed instalment agreements with a final balloon repayment at
maturity. All products are extended to consumer and commercial
customers located in the UK. The transaction features a revolving
period which will end on the payment date falling in [April 2025]
in the absence of an early amortisation event.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: Auto Loan ABS Global Rating Methodology
- ABS: General Global Rating Methodology for Asset Backed
Securities
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
This credit rating is endorsed by Kroll Bond Rating Agency
Europe Limited for use in the European Union. Information on a
credit rating’s endorsement status is available on its rating page
at KBRA.com.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
There are certain issuers, entities or transactions rated by
KBRA Europe or KBRA UK that may be or have relationships with
Shareholders and/or Shareholder-Related Companies, as that term is
defined in KBRA’s Shareholder and Shareholder Related Companies for
KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure
information may be found here.
About KBRA UK
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider. Kroll Bond Rating Agency UK is located
at 1 Connaught Place, 2nd Floor London, England.
Doc ID: 1005682
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Analytical Contacts
Gabriele Gramazio, Senior Director (Lead Analyst) +44 20 8148
1001 gabriele.gramazio@kbra.com
Karl Cummins, Senior Director +353 1 588 1240
karl.cummins@kbra.com
Killian Walsh, Managing Director (Rating Committee Chair) +353 1
588 1184 killian.walsh@kbra.com
Business Development Contacts
Mauricio Noé, Co-Head of Europe +44 20 8148 1010
mauricio.noe@kbra.com
Miten Amin, Managing Director +44 20 8148 1002
miten.amin@kbra.com