DBRS Maintains Under Review with Negative Implications Rating on LEAF 2011-1

DBRS has today maintained the placement of ratings of the LEAF Receivables Funding 6, LLC – Equipment Contract Backed Notes, Series 2011-1 (the Series 2011-1), as Under Review with Negative Implications, due to (1) the existence of an Event of Servicer Termination related to the breach of a cumulative loss trigger (as further described in the transaction documents) and (2) the Servicer’s management of the transaction’s delinquency pipeline. The ratings had originally been placed Under Review with Negative Implications on June 24, 2013, as a result of a breach of a delinquency trigger (as further described in the documents).

Recent delinquency levels and rates of loss accumulation could increase stress on the transaction, particularly upon the most junior rated security, the Class E-2, depending on the strategy the Servicer uses in its management of those non-performing assets. Currently, the level of seriously delinquent is not large enough for the threat of its loss realization to jeopardize the security of investors in the most subordinate tranche of the transaction. However, if additional amounts were to become seriously delinquent, those, in conjunction with the existing seriously delinquent pipeline, could result in a significant reduction in security for the most subordinate tranche. Currently, the collateral pool factor is 8.85%, making the transaction eligible for the exercise of a clean-up call. Additionally, the transaction limit for repurchase/substitution of leases is well below the maximum threshold set forth in the transaction documents.

The classes affected are:

-- Class D at BBB (sf), Under Review with Negative Implications
-- Class E-1 at BB (sf), Under Review with Negative Implications
-- Class E-2 at B (low) (sf), Under Review with Negative Implications
DBRS will continue to monitor delinquency aging, defaults and recoveries, and will resolve the Under Review with Negative Implications placement as soon as sufficient information becomes available. The outstanding ratings may either be confirmed or downgraded depending on the resolution of these situations.

DBRS has also discontinued the AAA (sf) rating of the Class A notes, the AA (sf) ratings on the Class B notes and the A (sf) ratings on the Class C notes, due to their repayment.

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.