DBRS Downgrades Chrysler Financial Services Americas LLC to C, Ratings Placed Under Review Negative

DBRS has today downgraded the ratings of Chrysler Financial Services Americas LLC (Chrysler Financial or the Company), including the Issuer Rating to C from CCC. Concurrently, all ratings have been placed Under Review with Negative Implications.

This rating action follows today’s announcement that Chrysler LLC’s intends to file for protection under Chapter 11 bankruptcy and the announcement that Chrysler Financial will no longer be providing financing on new Chrysler products, which ultimately places Chrysler Financial in run-off. The ratings of Chrysler Financial reflect DBRS’s view that the Company faces limited prospects without access to new loan origination volume. As such, DBRS believes that it is unlikely that the Company will be able to generate sufficient earnings to absorb elevated credit costs resulting from the recessionary environment in the U.S. Moreover, the lowering of the secured ratings reflects DBRS’s view that the recovery prospects have been reduced as Chrysler Financial is placed in liquidation mode. The review placement on all the ratings reflects the uncertainty as to timing of principle and interest payments.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable rating methodology is Rating Auto Finance Companies in the United States, which can be found on our website under methodologies.

This is a Corporate (Financial Institutions) rating.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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