Press Release
DBRS Takes Rating Actions on LEAF Equipment ABS
EquipmentDBRS, Inc. (DBRS) has reviewed six of its outstanding U.S. structured finance equipment asset-backed securities transactions issued by various funds sponsored by LEAF Financial Corporation or LEAF Commercial Capital, Inc. Of the six publicly rated series reviewed, 13 classes were confirmed, 10 classes were upgraded, six were placed Under Review with Negative Implications, and four classes was discontinued due to full repayment of the noteholders.
The following transactions have been reviewed:
• LEAF Receivables Funding 3, LLC, Equipment Contract Backed Notes, Series 2010-2
• LEAF Receivables Funding 4, LLC, Equipment Contract Backed Notes, Series 2010-3
• LEAF Receivables Funding 6, LLC, Equipment Contract Backed Notes, Series 2011-1
• LEAF Receivables Funding 7, LLC, Equipment Contract Backed Notes, Series 2011-2
• LEAF Receivables Funding 8, LLC, Equipment Contract Backed Notes, Series 2012-1
• LEAF Capital Funding SPE B, LLC
The collateral supporting the confirmed ratings is performing within DBRS expectations and available credit enhancement for each class is sufficient to cover DBRS expected losses. For the ratings that were upgraded, the transactions have exhibited positive performance trends and experienced increases in credit support sufficient to withstand stresses at their new rating level.
The ratings of LEAF Receivables Funding 6, LLC - Equipment Contract Backed Notes, Series 2011-1 have been placed Under Review with Negative Implications. The placement of the ratings Under Review with Negative Implications has been taken as result of the breach of a performance trigger that is defined as an Event of Servicer Termination in the deal documents. If exercised, the Servicer Termination Event could affect future performance of the collateral. The outstanding ratings will either be confirmed or downgraded depending on the resolution of this situation.
Currently, the performance of the transactions and credit enhancement levels are for the transactions placed Under Review with Negative Implications are within DBRS expectations for their respective rating levels.
DBRS is monitoring LEAF’s efforts to address this matter and will provide additional disclosure as appropriate.
Notes:
The applicable methodology is the 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.
Ratings
LEAF Capital Funding SPE B, LLC
LEAF Receivables Funding 3, LLC, Equipment Contract Backed Notes, Series 2010-2
LEAF Receivables Funding 4, LLC - Equipment Contract Backed Notes, Series 2010-3
LEAF Receivables Funding 6, LLC - Equipment Contract Backed Notes, Series 2011-1
LEAF Receivables Funding 7, LLC - Equipment Contract Backed Notes, Series 2011-2
LEAF Receivables Funding 8, LLC - Equipment Contract Backed Notes, Series 2012-1
ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.
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Contacts
Claire Mezzanotte
Group Managing Director, Global Head of Structured Finance Ratings - Credit Ratings Leadership
+(1) 212 806 3272
claire.mezzanotte@morningstar.com- Maxim Berger
Assistant Vice President, US ABS & Surveillance - Global Structured Finance
+1 212 806 3279
mberger@dbrs.com - Jayce Fox
Senior Vice President, US ABS Surveillance - Global Structured Finance
+1 203 883 5815
jayce.fox@morningstar.com