NEW YORK — DBRS has released its final rating methodology for U.S. auto lease asset-backed transactions.

The company indicated its final methodology does not have any substantive changes from the proposed lease methodology, which was published on Dec. 14 with a request for comments.

Executives explained the methodology provides an overview of the key factors which DBRS believes could impact the performance of U.S. lease ABS and their approach for rating these transactions. DBRS included seven specific factors:

— Quality of management and financial condition of sponsoring entity.

— Originations, underwriting and servicing capabilities.

— Collateral credit quality and performance of issuer's/originator's auto lease portfolio.

— Residual value analysis.

— Transaction capital structure, proposed ratings and credit enhancement.

— Cash flow analysis.

— Legal structure and opinions.

"As part of the rating process, DBRS performs an operational risk review and assessment of the sponsoring entity's origination and servicing capabilities to provide insight into the manner in which these processes have impacted past pool performance and to assist in establishing expectations for future performance," company officials emphasized.

DBRS went on to explain its process for each requested rating. Executives noted that they develop cash flow stress assumptions based upon the proposed transaction structure to test the financial viability of the transaction under various scenarios.

The factors DBRS considers in cash flows include lease defaults, turn-in rates, residual losses, timing of lease defaults and residual losses, recoveries and other pool related assumptions such as subvention, prepayments and delinquencies.

DBRS also mentioned that its criteria and methodologies are available on its Web site at www.dbrs.com.