This report does not constitute a rating action. Overview Key strengths Key risks The largest publicly traded pure-play automotive fleet manager globally. About one-third of assets are encumbered, albeit on a nonrecourse basis. Liabilities that are predominantly match-funded with vehicle leases. A funding model that utilizes wholesale funding, though funding sources have become more diversified. An open-ended leasing structure in North America that limits residual risk exposure. Exposure to potential volatility in automotive production. Syndication capabilities that create additional revenue opportunities and balance sheet management. Exposure to U.S. state regulations banning the sale of new gas-powered cars, which could affect earnings. Element Fleet Management Corp.?s committed order pipeline remains robust, and we expect continued momentum from the transition of self-managed
