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European rating agency. Objective, transparent, independent.

C3 Class A Notes

Driver UK Master S.A., Compartment 3

Rating History

Rating Watch Outlook Decision Date Action Validity Date Maximum Validity
AAAsf Outlook STA 22.09.2021 27.09.2021 23.09.2022
AAAsf Outlook STA 20.11.2020 25.11.2020 25.09.2028
AAAsf Outlook STA 09.06.2020 12.06.2020 25.05.2027
AAAsf Outlook STA 20.03.2020 25.03.2020 25.05.2027
AAAsf Outlook STA 22.05.2019 28.05.2019 25.05.2027
AAAsf Outlook STA 17.08.2018 21.08.2018 26.05.2026
AAAsf Watch UNW 26.07.2018 02.08.2018 26.05.2026
AAAsf Outlook STA 23.05.2018 25.05.2018 26.05.2026
AAAsf 01.09.2017 15.09.2017 27.05.2025

News

  • 27.09.2021
    Further details regarding the regulatory requirements according to ESMA (European Securities and Markets Authority) Guidelines 33-9-320 can be found in the document attached below.
  • 25.11.2020
    Further details regarding the regulatory requirements according to ESMA (European Securities and Markets Authority) Guidelines 33-9-320 can be found in the document attached below.
  • 12.06.2020
    Creditreform Rating has confirmed the ratings of the Class A and B notes of Driver UK Master S.A., acting for and on behalf of its Compartment 3.
    Further details regarding the regulatory requirements according to ESMA (European Securities and Markets Authority) Guidelines 33-9-320 can be found in the document attached below.
  • 25.03.2020
    Following an extension of the revolving period, Creditreform Rating confirms the ratings of Class A and B notes series of Driver UK Master S.A., acting for and on behalf of its Compartment 3 (DUKM), as follows:

    GBP 401,000,000 Class A 2016-1 Floating Rate Asset Backed Notes: AAAsf/ stable

    GBP 55,000,000 Class B 2016-1 Floating Rate Asset Notes: A+sf/ stable

    As of March 2020 the outstanding discounted balance amounts to GBP 604m with a share of 0.48% of the outstanding discounted balance being delinquent. The cumulative net loss ratio is 0.76% of the initial discounted receivables balance. The current total CE levels are 34.52% and 25.42% for the Class A and B notes, respectively.

    The revolving period of the transaction was extended until November 2020. Creditreform Rating did not observe any negative implications for its Credit and Portfolio Risk analysis or Cashflow analysis. Therefore, the ratings are not affected by the extension of the revolving period.
  • 28.05.2019
    In the course of a renewal Creditreform Rating confirms the ratings of Class A Series 2016-1 and Class B Series 2016-1 notes of Driver UK Master S.A., acting for and on behalf of its Compartment 3, as follows:

    Floating Rate Asset Backed Class A notes with a current rating of AAAsf / stable (current outstanding amount: GBP 401,000,000)

    Floating Rate Asset Backed Class B notes with a current rating of A+sf / stable (current outstanding amount: GBP 55,000,000)

    The transaction is a securitisation of auto financing contracts in UK, originated by Volkswagen Financial Services (UK) Limited (VWFS). 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 data-bases. Driver UK Master S.A., Compartment 3 features a 12 month revolving period and is secured by new and used vehicle financing contracts. The structure allows for term-takeout, tap-issuance and extension of the revolving period. A combination of Subordinated Loan and overcollateralization will provide credit enhancement to the rated Class A and Class B notes.

    VWFS credited to the Cash Collateral Account (CCA) a certain amount which will be available to cover senior costs and note interest payments. Furthermore, the CCA will also be available to redeem notes on the final maturity date or on the date on which the aggregated discounted receivables balance has been reduced to zero, as long as no enforcement event has occurred. Downgrade collateral and replacement provisions mitigate counterparty risk exposures with respect to the Account Bank. Risks related to the Issuer are limited, the compartment structure being ring-fenced and with limited recourse to other creditors of the Issuer.
  • 21.08.2018
    Creditreform Rating (CRA) has reviewed the ratings of Class A Series 2016-1 and Class B Series 2016-1 notes of Driver UK Master S.A., acting for an on behalf of its Compartment 3 (DUKM) 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 DUKM, as follows:


    Floating Rate Asset Backed Class A notes with a current rating of AAAsf / stable (current outstanding amount: GBP 401,000,000)

    Floating Rate Asset Backed Class B notes with a current rating of A+sf / stable (current outstanding amount: GBP 55,000,000)


    The current total credit enhancement is 34.40% and 25.28% for Class A and B notes series, respectively. 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.
  • 02.08.2018
    Creditreform Rating has set the ratings of the Class A Series 2016-1 and Class B Series 2016-1 of Driver UK Master S.A., acting for an on behalf of its Compartment 3, 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.

    Floating Rate Asset Backed Notes:

    Class A 2016-1 AAAsf (watch)
    Class B 2016-1 A+sf (watch)

  • 25.05.2018
    In the course of a renewal Creditreform Rating confirms the ratings of Class A Series 2016-1 and Class B Series 2016-1 notes of Driver UK Master S.A., acting for an on behalf of its Compartment 3, and assigns a “stable” rating outlook to the ratings, as follows:


    Series Amount Rating / Outlook

    A 2016-1 401,000,000 AAAsf / stable

    B 2016-1 55,000,000 A+sf / stable

    The outstanding note volume of the Class A Series 2016-1 has increased by GBP 16m compared to the follow-up rating in the previous year following a tap-up.

    The transaction is a securitisation of auto financing contracts in UK, originated by Volkswagen Financial Services (UK) Limited (VWFS). 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 data-bases. Driver UK Master S.A., Compartment 3 features a 12 months revolving period and is secured by new and used vehicle financing contracts. The structure allows for term-takeout, tap-issuance and extension of the revolving period. A combination of Subordinated Loan, overcollateralization and a cash reserve will provide credit enhancement to the rated Class A and Class B notes.

    VWFS credited to the Cash Collateral Account a certain amount which will be available to cover senior costs and note interest payments. Downgrade collateral and replacement provisions mitigate counterparty risk exposures with respect to the Account Bank. Risks related to the Issuer are limited, the compartment structure being ring-fenced and with limited recourse to other creditors of the Issuer.
  • 15.09.2017
    In the course of a renewal Creditreform Rating has assigned ratings to the Class A Series 2016-1 and Class B Series 2016-1 notes of Driver UK Master S.A., acting for an on behalf of its Compartment 3, as follows:





    Series Amount Rating



    A 2016-1 385,000,000 AAAsf



    B 2016-1 55,000,000 A+sf





    The outstanding note volume of the Class A Series 2016-1 has increased by EUR 52.5m compared to the initial rating in the previous year following a tap-up.



    The transaction is a securitisation of auto financing contracts in UK, originated by Volkswagen Financial Services (UK) Limited (VWFS). 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 data-bases. Driver UK Master S.A., Compartment 3 features a 12 months revolving period and is secured by new and used vehicle financing contracts. The structure allows for term-takeout, tap-issuance and extension of the revolving period. A combination of Subordinated Loan, overcollateralization and a cash reserve will provide credit enhancement to the rated Class A and Class B notes.



    VWFS credited to the Cash Collateral Account a certain amount which will be available to cover senior costs and note interest payments. Downgrade collateral and replacement provisions mitigate counterparty risk exposures with respect to the Account Bank. Risks related to the Issuer are limited, the compartment structure being ring-fenced and with limited recourse to other creditors of the Issuer.