DBRS Confirms Ratings on LEAF Receivables Funding 4, LLC & LEAF Receivables Funding 5, LLC

DBRS Inc. (DBRS) has reviewed the LEAF Receivables Funding 4, LLC - Equipment Contract Backed Notes, Series 2010-3 and LEAF Receivables Funding 5, LLC - Equipment Contract Backed Notes, Series 2010-4 equipment lease receivables asset-backed securities transactions.

Ratings for LEAF Receivables Funding 4, LLC - Equipment Contract Backed Notes, Series 2010-3 are removed from Under Review- Negative and confirmed. The transaction was Under Review with negative implications due to the breach of a trigger that could have allowed for the replacement of the servicer. The trigger has since been amended by agreement between the servicer and investors and is no longer in breach. Currently, the collateral supporting the transaction is performing within DBRS expectations and available credit enhancement is sufficient to cover DBRS expected losses.

Ratings for LEAF Receivables Funding 5, LLC - Equipment Contract Backed Notes, Series 2010-4 are remaining Under Review- Negative. The transaction had been placed Under Review with negative implications due to the breach of a trigger that could have allowed for the replacement of the servicer. The trigger has since been amended by agreement between the servicer and investors and is no longer in breach. However, recent payment performance trends have lagged, and if not resolved, could negatively impact the transaction’s ability to maintain available credit enhancement sufficient to cover DBRS expected losses at its current rating levels.

Notes:
The applicable methodology is DBRS Master U.S. ABS Surveillance Methodology, which can be found on our website under Methodologies.

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

Lead Analyst: Jayce Fox
Rating Committee Chair: Erin Stafford
Initial Rating Date for LEAF Receivables Funding 4, LLC: August 12, 2010
Initial Rating Date for LEAF Receivables Funding 5, LLC: November 23, 2010
Most Recent Rating Date: June 13, 2012