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Auto ABS Securitizations Class A Notes

Driver UK Multi-Compartment S.A., Compartment Private Driver UK 2016-1

Rating History

Rating Watch Outlook Decision Date Action Validity Date Maximum Validity
n.r. 26.02.2020 27.02.2020 27.02.2020
AAAsf Outlook STA 22.07.2019 23.07.2019 25.03.2025
AAAsf Outlook STA 17.08.2018 21.08.2018 25.03.2025
AAAsf Watch UNW 26.07.2018 02.08.2018 25.03.2025
AAAsf 01.09.2017 15.09.2017 25.03.2025

News

  • 27.02.2020
    Creditreform Rating has withdrawn the ratings of the Class A Notes and Class B Notes of Driver UK Multi-Compartment S.A., acting for and on behalf of its Compartment Private Driver UK 2016-1 (PDUK). The rating action reflects the full redemption of the Class A Notes and B Notes as of 25 February 2020. Before the payment in full the remaining balances and ratings were as follows: Fixed Rate Asset Backed Class A notes with a rating of AAAsf / stable (outstanding amount: GBP 59,981,334.94) Fixed Rate Asset Backed Class B notes with a rating of A+sf / stable (outstanding amount: GBP 8,997,200.24)
  • 23.07.2019
    Creditreform Rating (CRA) has confirmed the ratings of the Class A Notes and the Class B Notes of Driver UK Multi-Compartment S.A., acting for and on behalf of its Compartment Private Driver UK 2016-1 (PDUK), as follows: Fixed Rate Asset Backed Class A notes with a current rating of AAAsf / stable (current outstanding amount: GBP 123,000,997.69) Fixed Rate Asset Backed Class B notes with a current rating of A+sf / stable (current outstanding amount: GBP 18,450,149.65) The transaction is a securitisation of auto financing contracts originated by Volkswagen Financial Services (UK) Limited (VWFS) in England. Closing of PDUK took place in June 2016. As of July 2019 the outstanding discounted balance amounts to GBP 175.7m. The cumulative net loss ratio is 1.35% of the discounted receivables balance of all initial receivables and additional receivables. Currently, the Class A and B Notes represent 70.00% and 10.50% of the outstanding discounted receivables balance, respectively. Credit enhancement to the notes is provided by the Subordinated Loan (17.52%), overcollateralization (1.98%), and a cash reserve of currently 4.27% of the outstanding discounted receivables balance. Since the closing the credit enhancement level of the Class A Notes increased from 24.40% to 34.27%, while the credit enhancement level of the Class B Notes increased from 16.09% to 23.77%. To size the credit risk, the voluntary termination risk and the residual value risk of the portfolio and derive base case assumptions about loss rates and expected recovery performance, Creditreform Rating used data provided by VWFS as well as internal databases. The rating action has taken into account the increased credit enhancement levels for the Class A and B Notes and the overall portfolio performances as of the end of June 2019.
  • 21.08.2018
    Creditreform Rating (CRA) has reviewed the ratings of the Class A Series and Class B Series notes of Driver UK Multi-Compartment S.A., acting for and on behalf of its Compartment Private Driver UK 2016-1 (PDUK) due to changes in the methodologies “Rating Methodology Auto ABS Securitizations” and “Technical Documentation Portfolio Loss Distributions” and in accordance with regulatory requirements. CRA removes the (watch) status and confirms the ratings of the Class A and B notes of PDUK, as follows: Fixed Rate Asset Backed Class A notes with a current rating of AAAsf / stable (current outstanding amount: GBP 314,084,577.18) Fixed Rate Asset Backed Class B notes with a current rating of A+sf / stable (current outstanding amount: GBP 47,112,686.58) The transaction is a securitisation of auto financing contracts originated by Volkswagen Financial Services (UK) Limited in England. As of July 2018 the outstanding discounted balance amounts to GBP 448.7m. The cumulative net loss ratio is 0.53% of the discounted receivables balance of all initial receivables and additional receivables. Currently, the Class A and B Notes represent 70.00% and 10.50% of the outstanding discounted receivables balance, respectively. Credit enhancement to the notes is provided by a Subordinated Loan (17.22%), overcollateralization (2.28%), and a cash reserve of currently 1.67% of the outstanding discounted receivables balance. Since the closing the credit enhancement level of the Class A Notes increased from 24.40% to 31.67%, while the credit enhancement level of the Class B Notes increased from 16.09% to 21.17%. To size the credit risk, the voluntary termination risk and the residual value risk of the portfolio and derive base case assumptions about loss rates and expected recovery performance, Creditreform Rating used data provided by VWFS as well as internal databases. The rating actions take into account the changes in the methodologies “Rating Methodology Auto ABS Securitizations” and “Technical Documentation Portfolio Loss Distributions” as of July 30 2018, the increased credit enhancement levels for the Class A and B Notes and the overall portfolio performance as of the end of June 2018.
  • 02.08.2018
    Creditreform Rating has set the ratings of the Class A Series and Class B Series notes of Driver UK Multi-Compartment S.A., acting for and on behalf of its Compartment Private Driver UK 2016-1, to (watch) and is going to review the ratings due to a methodology change and in accordance with regulatory requirements. The review is open-ended. Fixed Rate Asset Backed Notes: Class A Series Fixed Rate Asset Backed Notes AAAsf (watch) Class B Series Fixed Rate Asset Backed Notes A+sf (watch)
  • 15.09.2017
    Creditreform Rating assigned ratings to auto financing contracts securitisation Driver UK Multi-Compartment S.A., Compartment Private Driver UK 2016-1 Creditreform Rating has assigned ratings to the Class A Series and Class B Series notes of Driver UK Multi-Compartment S.A., acting for and on behalf of its Compartment Private Driver UK 2016-1, as follows: Class A Series Fixed Rate Asset Backed Notes: AAAsf Class B Series Fixed Rate Asset Backed Notes: A+sf The transaction is a GBP 750m securitisation of auto financing contracts originated by Volkswagen Financial Services (UK) Limited in England, Wales and Scotland. Creditreform Rating used historical performance data provided by VWFS and internal databases to assess credit-, voluntary termination- and residual value risks of the portfolio. Based on improved historical performance, Creditreform Rating has set a base case gross loss expectation of 1.3% for its rating analyses. Furthermore, Creditreform Rating has set the recovery base case at 71.0%, resulting in expected net loss of 4.86% (AAAsf) and 3.47% (A+sf). To size VT and RV risk, Creditreform Rating analysed separately the historical data with respect to (1) turn-in rates and (2) recovery performance. This resulted in assumed total VT risk of 2.53% (AAAsf) and 1.92% (A+sf) and assumed total RV risk of 15.48% (AAAsf) and 11.08% (A+sf). Following the analysis of empirical prepayment data available, stressed prepayment assumptions were set at 8.84% (AAAsf) and 10.19% (A+sf) for each rating scenario, respectively. Downgrade collateral and replacement provisions mitigate counterparty risk exposure with respect to the Account Bank and VWFS acting as Seller and Servicer. Moreover, the counterparty risk is lower compared to other securitisations due to fixed rate notes. Risks related to the Issuer are limited, the compartment structure being ring-fenced and with limited recourse to other creditors of the Issuer. Driver UK Multi-Compartment S.A., Compartment Private Driver UK 2016-1 features an 11 month revolving period and is secured by new and used vehicle financing contracts. A combination of Subordinated Loan, overcollateralization and a cash reserve provide credit enhancement to the rated Class A Notes (24.40%) and Class B Notes (16.09%). CRA used its proprietary cash flow model to examine the stability of the transaction structure under various rating scenarios. In order to gauge the effect of variations in types of risk on rating indications, Creditreform Rating conducted a sensitivity analysis with 25% and 50% stress factors on default rates, recovery rates, prepayment rates and RV and VT Risk. Creditreform Rating has applied the CRA "Auto ABS Securitizations" rating methodology.