DBRS Confirms Ratings of A10 Revolving Asset Financing I, LLC

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

-- $200 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 trends are Stable. The transaction originally closed in October 2012 and the facility is being extended in conjunction with these ratings confirmations. These ratings confirmations reflect the upsized facility in respect to the increase in the Class A note balance and any changes within the Eligible Loan and Concentration Limits.

The ratings are based on a pool composition of commercial real estate loans that have a weighted-average loan-to-value ratio of 70%. DBRS used its static CMBS methodology to construct a worst-case pool based on the 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 notes mature on the payment date occurring seven years following the date of latest extension of the facility. The ratings of Class B notes 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 notes legal final maturity date.

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

The applicable methodologies are CMBS Rating Methodology, Rating North American Commercial Real Estate Non-Performing Loan Liquidating Trusts, 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.