2022-1 Class A-1 Asset Backed Notes (the Class A-1 Notes) at
2022-1 Class A-2 Asset Backed Notes (the Class A-2 Notes) at
2022-1 Class A-3 Asset Backed Notes (the Class A-3 Notes; together with the Class A-1 Notes and the Class A-2 Notes, the Notes) at
The rating confirmations are based on the following factors as of
(1) Credit enhancement (CE) is available to protect the Notes. Credit protection is provided by overcollateralization and a nonamortizing cash reserve account representing approximately 3.8% and 0.4%, respectively, of the outstanding Note balance. In addition, excess spread is available to offset collection shortfalls on a monthly basis. Current excess spread is approximately 4.2%, before any assumed provision for replacement servicer fees.
(2) Total CE has grown to approximately 4.2% from 2.8% at the time of the initial rating.
(3) Cumulative losses (null as ofDecember 2022 ) remain well below DBRS Morningstar's expectations set at the time of the initial rating.
(4)Mercedes-Benz Group AG (formerlyDaimler AG ) (rated A (low) with a Stable trend by DBRS Morningstar), the parent company ofMercedes-Benz Financial Services Corporation , remains above investment grade as ofNovember 2022 .
DBRS Morningstar monitors the performance of each transaction to identify any deviation from its expectations at issuance and to ensure that the ratings remain appropriate. The review is predicated upon the timely receipt of performance information from the related providers. The performance and characteristics of each publicly rated auto loan portfolio and the notes are available and updated each month in the Monthly Canadian
ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance (ESG) factors that had a significant or relevant effect on the credit analysis.
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929> (
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodology applicable to the rating is the Master Canadian Structured Finance Methodology (
Other methodologies referenced in this transaction are listed at the end of this press release. These may be found at: https://www.dbrsmorningstar.com/about/methodologies>.
The DBRS
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com' >info@dbrsmorningstar.com.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
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The rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies>.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com' >info@dbrsmorningstar.com.
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