Fitch rates Rental Car Finance Corp.'s (RCFC)
floating-rate rental car asset-backed notes, series 2006-1 class A
'AAA'. The principal amount is $600,000,000 and the notes are issued
as a single class. The notes, which priced on March 21, 2006, carry a
coupon of LIBOR plus 0.18%.
The series 2006-1 class A notes are backed by a master lease and subleases of rental fleet vehicles to DTG Operations, Inc. and other subsidiaries of Dollar Thrifty Automotive Group, Inc. (DTAG), and by the rental fleet vehicles. The full and timely payment of monthly interest and the ultimate payment of principal by the termination date of Series 2006-1 are backed by a financial guaranty insurance policy from Ambac Assurance Corporation, whose insurer financial strength is rated 'AAA' by Fitch. Additional credit enhancement for the Series 2006-1 is provided by a letter of credit, overcollateralization and/or a cash liquidity amount.
Series 2006-1 is structured with a revolving period and a six month controlled amortization period. Interest is expected be paid on the 25th day of each month, beginning on May 25, 2006. Upon the commencement of the controlled amortization period or a rapid amortization period, interest will be paid prior to any distribution of principal. During the controlled amortization period, proceeds generated by collections will be passed through monthly to the series 2006-1 noteholders as a controlled distribution amount.
DTAG, headquartered in Tulsa, Oklahoma, provides vehicle rental to travelers in 70 countries through its brands Dollar Rent A Car (Dollar) and Thrifty Rental (Thrifty). Dollar and Thrifty have over 1,600 corporate and franchised worldwide locations, including over 800 in the United States and Canada.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
The series 2006-1 class A notes are backed by a master lease and subleases of rental fleet vehicles to DTG Operations, Inc. and other subsidiaries of Dollar Thrifty Automotive Group, Inc. (DTAG), and by the rental fleet vehicles. The full and timely payment of monthly interest and the ultimate payment of principal by the termination date of Series 2006-1 are backed by a financial guaranty insurance policy from Ambac Assurance Corporation, whose insurer financial strength is rated 'AAA' by Fitch. Additional credit enhancement for the Series 2006-1 is provided by a letter of credit, overcollateralization and/or a cash liquidity amount.
Series 2006-1 is structured with a revolving period and a six month controlled amortization period. Interest is expected be paid on the 25th day of each month, beginning on May 25, 2006. Upon the commencement of the controlled amortization period or a rapid amortization period, interest will be paid prior to any distribution of principal. During the controlled amortization period, proceeds generated by collections will be passed through monthly to the series 2006-1 noteholders as a controlled distribution amount.
DTAG, headquartered in Tulsa, Oklahoma, provides vehicle rental to travelers in 70 countries through its brands Dollar Rent A Car (Dollar) and Thrifty Rental (Thrifty). Dollar and Thrifty have over 1,600 corporate and franchised worldwide locations, including over 800 in the United States and Canada.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.