DBRS Confirms Rating of ReadyCap Commercial Revolving Asset Trust

DBRS has today confirmed the rating of the ReadyCap Commercial Revolving Asset Trust $215 million Variable Funding Notes (the Notes) at A (sf). The trend is Stable.

The rating is based on an assumed pool composition of commercial real estate loans that have a weighted-average debt yield at the minimum allowable level for each product type. DBRS used its static commercial mortgage-backed securities (CMBS) methodology to construct a worst-case pool based on other concentration limits and eligibility requirements as defined in the Trust Indenture.

The rating addresses the likelihood of the timely receipt by noteholders of interest and the ultimate repayment of principal on or before the legal final maturity date, which is 18 months after (1) the payment date occurring 12 months following the closing date or (b) six months following the issuer’s exercise of the extension option.

The revolving period was recently extended and is currently set to end on December 5, 2014.

The rating assigned to the Notes by DBRS is based exclusively on the credit provided by the transaction structure and underlying trust assets. The rating will be subject to ongoing surveillance, which could result in upgrades or downgrades by DBRS after the date of issuance.

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

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

The applicable methodology is CMBS Rating Methodology (January 2012), which can be found on our website under Methodologies.