KBRA Assigns Preliminary Ratings to Driver UK Multi-Compartment S.A., Compartment Driver UK eight
9 Feb 2024 | London
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 eight (Driver UK 8), 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 8 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 8 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. 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 September 2024 in the absence of an early amortisation event.
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