Exeter Automobile Receivables Trust 2019-1 Assigned Ratings

OVERVIEW
  • Exeter Automobile Receivables Trust 2019-1's issuance is an ABS transaction backed by subprime auto loan receivables.
  • We assigned our ratings to the class A, B, C, D, and E notes.
  • The ratings reflect our view of the transaction's collateral characteristics, credit enhancement, and payment and legal structures, among other factors.
NEW YORK (S&P Global Ratings) Jan. 31, 2019--S&P Global Ratings today assigned 
its ratings to Exeter Automobile Receivables Trust 2019-1's automobile 
receivables-backed notes (see list).

The note issuance is an asset-backed securities transaction backed by subprime 
auto loan receivables.

The ratings reflect: 
  • The availability of approximately 60.5%, 53.8%, 45.2%, 35.5%, and 29.5% credit support for the class A, B, C, D, and E notes, respectively, based on stressed cash flow scenarios (including excess spread). This credit support provides coverage of approximately 2.85x, 2.50x, 2.05x, 1.55x, and 1.27x our 20.50%-21.50% expected cumulative net loss (CNL) range. These break-even scenarios withstand cumulative gross losses (CGLs) of approximately 93.0%, 82.8%, 72.3%, 56.8%, and 48.9%, respectively.
  • The timely interest and principal payments that we believe will be made to the rated notes under stressed cash flow modeling scenarios, which, in our view, are appropriate for the assigned ratings.
  • The expectation that under a moderate ('BBB') stress scenario (1.55x our expected loss level), all else being equal, our rating on the class A notes will remain at the assigned 'AAA (sf)' rating; our ratings on the class B and C notes will remain within one rating category of the assigned 'AA (sf)' and 'A (sf)' ratings, respectively, for the deal's life; and our rating on the class D notes will remain within two rating categories of the assigned 'BBB (sf)' rating over the deal's life. We expect the class E notes to remain within two rating categories of the assigned 'BB (sf)' rating over the first year, but we expect them to eventually default under this stress scenario. These rating movements are within the limits specified by our credit stability criteria (see " Methodology: Credit Stability Criteria," published May 3, 2010).
  • The collateral characteristics of the subprime automobile loans securitized in this transaction.
  • The transaction's payment, credit enhancement, and legal structures.
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