OREANDA-NEWS. Fitch Affirms Driver Master S. A. Compartments 2-5 Notes; Withdraws Ratings Fitch Ratings has affirmed Driver Master S. A. Compartments 2-5's class A and B notes and simultaneously withdrawn the ratings, as follows:

Compartment 2:

EUR947.1m class A notes (ISIN: XS1258029401): affirmed at 'AAAsf'; Stable Outlook; withdrawn

EUR44.1m class B notes (ISIN: XS1258030086): affirmed at 'A+sf'; Stable Outlook; withdrawn

Compartment 3:

EUR947.1m class A notes (ISIN: XS1259372503): affirmed at 'AAAsf'; Stable Outlook; withdrawn

EUR44.1m class B notes (ISIN: XS1259375944): affirmed at 'A+sf'; Stable Outlook; withdrawn

Compartment 4:

EUR947.1m class A notes (ISIN: XS1278929119): affirmed at 'AAAsf'; Stable Outlook; withdrawn

EUR44.1m class B notes (ISIN: XS1278929465): affirmed at 'A+sf'; Stable Outlook; withdrawn

Compartment 5:

EUR947.1m class A notes (ISIN: XS1278929549): affirmed at 'AAAsf'; Stable Outlook; withdrawn

EUR44.1m class B notes (ISIN: XS1278929622): affirmed at 'A+sf'; Stable Outlook; withdrawn

The transactions are a platform for Volkswagen Bank GmbH to securitise German auto loan receivables.

KEY RATING DRIVERS

Withdrawal For Commercial Reasons

Fitch has chosen to withdraw the ratings of Driver Master S. A. Compartments 2-5 for commercial reasons.

The affirmation was based on the then current transaction structure and performance to date. Fitch has assumed that the revolving period will be extended. We considered the following key rating drivers:

Performance In Line With Expectations

Fitch has maintained a lifetime default base case expectation of 1.8% for the portfolios, which is supported by the strong performance to date, prior Driver transactions and our expectation of a benign economic environment over the transactions' lives.

Portfolio Volatility Substantial

As in other master transactions, the portfolio balances may fluctuate substantially, as regular tap-ups and take-outs occur. Asset and portfolio eligibility criteria and a note redemption mechanism based on portfolio quality reduce adverse consequences.

Credit Enhancement (CE)

The class A notes currently benefit from CE of 10.8% and the class B notes from 6.6%. This is slightly higher than at closing due to the inclusion of replenished receivables at a higher purchase price discount (PPD) than the initial PPD.

RATING SENSITIVITIES

Fitch understands that the advance mechanism of collections is planned to be deactivated. This would allow for commingling of funds with VW Bank as servicer. This increases counterparty risk that under Fitch's counterparty criteria would no longer be commensurate with the 'AAAsf' rating on the class A notes with the given CE. Given the lower note ratings, class B ratings would likely not be affected.

For more details on increased credit exposure to sellers and servicers see "Fitch Warns of Growing Credit Exposure to Seller / Servicers in EMEA ABS" dated 08 June 2016 at www. fitchratings. com.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.

Prior to the transaction closing, Fitch conducted a review of a small targeted sample of the origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

Overall Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis:

- Monthly servicer report provided by VW Bank for all transactions up to the April 2016 collection period.

- Loan-by-loan data for Driver Master Compartment 2 from the European Data Warehouse as at 30 April 2016

REPRESENTATIONS AND WARRANTIES

A comparison of the transactions' Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendices that accompany the initial new issue reports (see e. g. Driver Master S. A., - Compartment 2 - Appendix, dated 27 July 2015 at www. fitchratings. com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 31 May 2016 available on the Fitch website.