DBRS Places the Ratings on the Notes of PCL Funding I Limited Under Review with Developing Implications

DBRS Ratings Limited (“DBRS”) has placed Under Review with Developing Implications the ‘A’ (sf) ratings on the Term Notes and Variable Funding Notes (collectively, the “Notes”) issued by PCL Funding I Limited (the “Issuer”). The Notes are placed Under Review with Developing Implications following the Deed of Amendment to the Master Framework Agreement executed on 3 October 2013.

Under the Deed of Amendment certain Definitions in the Master Framework Agreement were amended including the Concentration Percentages for the Second and Third Largest Intermediaries for a specified period of time. The amended percentages are set at levels of 1.00% above the initial Second Largest Intermediary Concentration Percentage and 2.00% above the initial Third Largest Intermediary Concentration Percentage. The amendment also includes step-down provisions with the Concentration Percentages returning to the original thresholds.

The Under Review with Developing Implications is a result the short-term feature of the increased Concentration Percentages which are above the Concentration Percentages assumed in the initial rating analysis. DBRS will monitor the performance of the transaction and will publish updated rating action that may either result in a confirmation, upgrade or downgrade.

Notes:
All figures are in Euros unless otherwise noted.
The principal methodology applicable is Master European Structured Finance Surveillance Methodology.

Other methodologies and criteria referenced in this transaction are listed at the end of this press release.

This can be found on www.dbrs.com at:
http://www.dbrs.com/about/methodologies

For a more detailed discussion of sovereign risk impact on Structured Finance ratings, please refer to DBRS commentary “The Effect of Sovereign Risk on Securitisations in the Euro Area” on: http://www.dbrs.com/industries/bucket/id/10036/name/commentaries/

The sources of information used for this rating include the Issuer.

DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

This is the first rating action since the Initial Rating Date.

Information regarding DBRS ratings, including definitions, policies and methodologies are available on www.dbrs.com.

This rating is under review. Generally, the conditions that lead to the assignment of reviews are resolved within a 90 day period. DBRS reviews and ratings are under regular surveillance.

For further information on DBRS historic default rates published by the European Securities and Markets Administration (“ESMA”) in a central repository, see:
http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

Initial Lead Analyst: Sergey Moiseenko
Initial Rating Date: 31 October 2012
Initial Rating Committee Chair: Claire Mezzanotte

Last Rating Date: 31 October 2012
Lead Surveillance Analyst: Keith Gorman
Rating Committee Chair: Chuck Weilamann

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The rating methodologies and criteria used in the analysis of this transaction can be found at: http://www.dbrs.com/about/methodologies

Master European Granular Corporate Securitisations (SME CLOs)
Legal Criteria for European Structured Finance Transactions
Derivative Criteria for European Structured Finance Transactions
Master European Structured Finance Surveillance Methodology
Operational Risk Assessment for European Structured Finance Servicers
Master European Residential Mortgage-Backed Securities Rating Methodology and Jurisdictional Addenda
Unified Interest Rate Model for European Securitisations
Rating European Consumer and Commercial Asset-Backed Securitisations