OREANDA-NEWS. Fitch Ratings has affirmed the notes of Driver UK Master S. A. - Compartment 2 and has simultaneously withdrawn the ratings. A full list of ratings follows at the end of this rating action commentary.

The transaction is a securitisation of a portfolio of UK auto loan receivables originated by Volkswagen Financial Services (UK) Limited (VWFS). Fitch initially rated the Master structure in November 2013; the transaction's ratings were last affirmed in November 2015 after an extension of the programme's replenishment period by seven months.

KEY RATING DRIVERS

Fitch has chosen to withdraw the ratings of Driver UK Master S. A. - Compartment 2 for commercial reasons. The affirmation reflects the transaction's satisfactory performance to date, as well as the most recent information available to Fitch regarding the transaction's legal structure.

Delinquencies have remained low since inception and cumulative defaults to date were at 0.4% of the pool balance, including new purchases since closing. The overall default base case for the pool is 1.4%. As Fitch assumed the transaction's replenishment period will be increased to 11 months, the agency has increased its 'AAAsf' default multiple to 6.75x. This is in line with the multiple previously used for the transaction when the replenishment period was 12 months.

Based on updated recovery data provided by the originator, Fitch has adjusted its overall recovery expectation for the transaction to 63.4%, from the level set in November 2015 of 66.6%, following a small but sustained reduction in recoveries for a share of the loans. The 'AAAsf' recovery haircut was left unchanged at 45%. Cumulative recoveries amounted to 21.1% of defaulted receivables as of the latest monthly report in May 2016, which is well below our expectation.

Transaction losses have remained stable at below 0.1% of the pool balance, including new purchases since closing, and credit enhancement is sufficient to support the ratings. The reserve fund remains fully funded at the required amount. Exposure to declines in used-car prices through residual value and voluntary termination losses remains the main loss driver in Fitch's analysis in high-stress scenarios.

RATING SENSITIVITIES

Fitch understands from the originator that the advance mechanism of collections is planned to be deactivated. This would allow for commingling of funds with VWFS as servicer. This increases counterparty risk that under Fitch's counterparty criteria would no longer be commensurate with the 'AAAsf' rating on the A notes with the given credit enhancement. Given the class B notes' lower ratings, the ratings may not be negatively 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.

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's 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's 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 asset pool 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 investor reports from November 2013 to May 2016.

- Loan-by-loan data for Driver UK Master S. A. - Compartment 2 from the European Data Warehouse as at 31 May 2016.

REPRESENTATIONS AND WARRANTIES

A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the new issue report, dated 25 November 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.

Fitch has affirmed and withdrawn the following ratings:

GBP285.9m Class A Series 2013-1, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP285.9m Class A Series 2013-2, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP116.0m Class A Series 2013-3, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP200m Class A Series 2013-4, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP425m Class A Series 2013-5, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP24.4m Class A Series 2013-6, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP524m Class A Series 2013-7, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP175m Class A Series 2013-8, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP90m Class A Series 2013-10, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP100m Class A Series 2014-1, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP200m Class A Series 2014-2, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP200m Class A Series 2014-3, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP300m Class A Series 2015-1, due June 2024: affirmed at 'AAAsf'; Outlook Stable; withdrawn

GBP64.1m Class B Series 2013-1, due June 2024: affirmed at 'A+sf'; Outlook Stable; withdrawn

GBP64.1m Class B Series 2013-2, due June 2024: affirmed at 'A+sf'; Outlook Stable; withdrawn

GBP124m Class B Series 2013-3, due June 2024: affirmed at 'A+sf'; Outlook Stable; withdrawn

GBP45.2m Class B Series 2014-1, due June 2024: affirmed at 'A+sf'; Outlook Stable; withdrawn

GBP150m Class B Series 2015-1, due June 2024: affirmed at 'A+sf'; Outlook Stable; withdrawn

GBP694.1m subordinated loan: not rated