DBRS Assigns Final Ratings to A10 Revolving Asset Financing I, LLC

DBRS has today assigned ratings to A10 Revolving Asset Financing I, LLC Class A and Class B Notes as defined below:

– $150 million Class A Senior Variable Funding Notes at AA (low) (sf)
– $10 million Class B Senior Subordinated Floating Rate Notes at BBB (high) (sf)

The ratings are based on a pool composition of commercial real estate loans that have a weighted-average loan-to-value (LTV) ratio of 70%. DBRS used its static CMBS methodology to construct a worst-case pool based on other concentration limits and eligibility requirements as defined in the Trust Indenture, then applied its liquidating trust methodology to stress the cash flows of the underlying real estate and employed liquidation timelines associated with expedited non-performing loans to evaluate the transaction and assign ratings to the Class A and Class B Notes.

The ratings address the likelihood of the timely receipt by the Class A holders of interest and the ultimate repayment of principal on or before the legal final maturity date of A10 Revolving Asset Financing I, LLC. The Class A matures on the payment date occurring seven years following the closing date of the transaction, or, if the revolving period is extended, seven years following the date of such extension. The ratings of Class B address the ultimate repayment of principal and with regard to interest the likelihood of the timely receipt by the Class B holders of interest to the extent not deferred as provided for in the indenture, and if deferred, ultimate repayment of interest by its final legal maturity date. The Class B notes shall mature on the payment date occurring three months following the Class A legal final maturity date.

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

The applicable methodologies are CMBS Rating Methodology, Commercial Real Estate Non-Performing Loan Liquidating Trust Methodology, Unified Interest Rate Model for European Securitisations, and Legal Criteria for U.S. Structured Finance Transactions, which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.