DBRS assigned triple-A ratings GMAC U.K.’s first public securitization of whole sale receivables called Wholesale Auto Receivables Funding (WARF).
DBRS said that while the manufacturer General Motors Co. filed for bankruptcy earlier in 2009, and continues to operate in a weak financial condition, neither GMAC or the U.S. finance or GMAC U.K. filed for bankruptcy when General Motors filed. Additionally, GMAC has received significant cash infusions from the U.S. government.
Operationally, GMAC U.K. is a strong servicer, according to DBRS. The company has considerable experience and is equipped in terms of systems, technology and processes to manage its portfolio.
Principal payment rate in the GMAC U.K. branded wholesale portfolio has stayed strong in the past several years, according to the rating agency.
The issuer's primary assets are receivables originated in connection with the purchase and financing by motor vehicle dealers of their new and used car and truck inventory. These dealers are mainly located in England, although some are in Scottish jurisdictions.
DBRS considers these assets to be a core asset of General Motors U.K. and Adam Opel. GMAC is the parent company of GMAC U.K..
The transaction, according to DBRS, also includes early amortization triggers when the average monthly principal payment rate for three consecutive collection periods is less than 20% and or an insolvency event were to happen to GMAC, General Motors U.K. or Adam Opel.