OREANDA-NEWS. S&P Global Ratings today assigned ratings to Wheels SPV 2 LLC's asset-backed notes series 2016-1 (see list).

The note issuance is an asset-backed securities transaction backed by a special unit of beneficial interest in lease contracts and underlying vehicles.

The ratings reflect:The availability of approximately 10.8% credit support (based on stressed break-even cash flow scenarios after final pricing) for the class A-1, A-2, and A-3 notes. The credit support provides sufficient coverage of the number of obligors that is consistent with our concentration approach for an 'AAA' rating category default, taking into account a stressed recovery rate. The transaction's consistency with our credit stability criteria, as evidenced by its ability to withstand several top obligor defaults, consistent with a moderate level of stress, before becoming vulnerable to a negative rating action. Our expectation of timely interest and principal payments by the final maturity date according to the transaction documents, based on stressed cash flow modeling scenarios, using assumptions commensurate with the assigned ratings. The amount of liquid credit enhancement (reserve account) that provides coverage of potential liquidity stress on the transaction in the form of stressed delinquencies or recovery delays. Given this level of liquid enhancement, the payment of fees and interest on all notes (including notes we will not rate) is consistent with our highest rating category. The amortizing pool's collateral characteristics, especially the total number of obligors (268), which falls below the 300-obligor threshold level that we generally use to begin incorporating event risk (obligor bankruptcy) as the primary driver in our stressed loss scenarios. Wheels Inc.'s lengthy servicing experience (over 75 years in business), including for the five prior transactions, as well as its financial strength as reflected in its 'A/Stable/A-1' rating. The transaction's legal structure.