Rating Action: Moody's upgrades Class B issued by World Omni Automobile Lease Securitization Trust 2019-AGlobal Credit Research - 19 Apr 2021Approximately $43 million of asset-backed securities affectedNew York, April 19, 2021 -- Moody's Investors Service, ("Moody's") has upgraded the rating on Class B issued by World Omni Automobile Lease Securitization Trust 2019-A (WOLS 2019-A). The collateral underlying the transaction consists of closed-end retail automobile leases originated by World Omni Financial Corp., who is also the servicer and administrator for the transaction.The complete rating action is as follows:Issuer: World Omni Automobile Lease Securitization Trust 2019-AClass B Asset Backed Notes, Upgraded to Aaa (sf); previously on Mar 13, 2019 Definitive Rating Assigned Aa2 (sf)RATINGS RATIONALEThe upgrade was prompted by an increase in credit enhancement due to the non-declining reserve account, overcollateralization and strong residual value performance of the underlying lease contracts.Moody's lifetime cumulative net credit loss (CNL) expectation for WOLS 2019-A remains unchanged at 1%.Auto lease ABS are mainly exposed to residual value risk for vehicles that are turned in at lease maturity instead of being purchased by the lessee at the contractual residual price, since these vehicles then have to be remarketed and therefore are subject to risk of which the sales price is lower than the securitized residual value. If a vehicle is not turned in (that is, purchased by the lessee), then the securitization is not exposed to the risk of loss as the lessee pays the contractual residual value to the lessor, which passes it on to the trust. Residual value risk is typically the largest component of risk in an auto lease deal.Although used vehicle prices declined in April 2020 following the coronavirus outbreak, prices have since rebounded, benefiting performance of maturing leases. As of April 2021, the transaction has experienced cumulative residual value gains (net sales proceeds in excess of the residual portion of securitization value) of 1.36% of the initial securitization value.The COVID-19 pandemic has had a significant impact on economic activity. Although global economies have shown a remarkable degree of resilience to date and are returning to growth, the uneven effects on individual businesses, sectors and regions will continue throughout 2021 and will endure as a challenge to the world's economies well beyond the end of the year. While persistent virus fears remain the main risk for a recovery in demand, the economy will recover faster if vaccines and further fiscal and monetary policy responses bring forward a normalization of activity. As a result, there is a heightened degree of uncertainty around our forecasts. Our analysis has considered the effect on the performance of consumer assets from a gradual and unbalanced recovery in US economic activity. Specifically, for US Auto lease deals, performance will continue to benefit from government support and the improving unemployment rate, which will support lessees' income and their ability to make lease payments. However, any softening of used vehicle prices will impact residual value performance on leases. Furthermore, any elevated level of lessee assistance programs, such as lease deferrals and extensions, may adversely impact scheduled cash flows to bondholders.We regard the COVID-19 outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety.PRINCIPAL METHODOLOGYThe principal methodology used in this rating was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in December 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1202515. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Factors that would lead to an upgrade or downgrade of the rating:DownMoody's could downgrade the notes if, given our expectations of portfolio losses, levels of credit enhancement are consistent with lower ratings. Losses could rise above Moody's original expectations as a result of a higher number of obligor defaults or deterioration in the value of the vehicles leading to higher residual value loss when the vehicle is turned in at the end of a lease and remarketed. Portfolio losses also depend greatly on the US job markets and the market for used vehicles. Other reasons for worse-than-expected performance include poor servicing, error on the part of transaction parties, inadequate transaction governance and fraud.REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.The analysis includes an assessment of collateral characteristics and performance to determine the expected collateral loss or a range of expected collateral losses or cash flows to the rated instruments. As a second step, Moody's estimates expected collateral losses or cash flows using a quantitative tool that takes into account credit enhancement, loss allocation and other structural features, to derive the expected loss for each rated instrument.Moody's quantitative analysis entails an evaluation of scenarios that stress factors contributing to sensitivity of ratings and take into account the likelihood of severe collateral losses or impaired cash flows. Moody's weights the impact on the rated instruments based on its assumptions of the likelihood of the events in such scenarios occurring.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The rating has been disclosed to the rated entity or its designated agent (s) and issued with no amendment resulting from that disclosure.This rating is solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.At least one ESG consideration was material to the credit rating action(s) announced and described above.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Amruta Chintawar Analyst Structured Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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