DBRS Confirms BEST 2010 B.V.

DBRS Ratings Limited (DBRS) has today confirmed the ratings on the following classes of notes issued by BEST 2010 B.V. (the Issuer):

-- Class A at AAA (sf)
-- Class B at AA (sf)
-- Class C at BBB (low) (sf)

BEST 2010 B.V. is a securitisation of a portfolio of Dutch residential mortgages originated by local cooperative credit institution members of the Rabobank Nederland (the Group) and Rabohypotheekbank N.V. Servicing of the mortgages is conducted by the relevant local cooperative or Service Centrum Financieren (a centralized service center that is a part of the Group). The securitisation has a revolving period (ending on the October 2020 payment date), which allows the Issuer to replenish repayment of receivables subject to Substitution Criteria.

Confirmation of the ratings for each class of Notes is based upon the following analytical considerations:
• Portfolio performance, in terms of delinquencies and defaults, as of the 27 October 2014 payment date.
• Substitution Criteria to allow replenishment of receivables during the revolving period are within the established thresholds.
• Current available credit enhancement to each class of Notes to cover the expected losses at the respective rating levels.

The current 90+ delinquency ratio as a percentage of the performing balance of the portfolio has been very low since the close of the transaction and is currently equal to 0.31%. The cumulative default ratio is also very low and equals 0.54% of the aggregated collateral balance.

Substitution Criteria to allow the continuation of replenishment of receivables during the revolving period include a 60 days arrears ratio less than 2.25% (currently 0.38%), a realised loss ratio as a percentage of the original portfolio less than 0.60% (currently 0.04%), the Principal Deficiency Ledge being equal to zero (true since the closing date) and no drawings on the Reserve Account (true since the closing date).

Credit enhancement to the Class A Notes is provided by subordination of the Class B Notes, Class C Notes and the Reserve Account. Credit enhancement to the Class B Notes is provided by subordination of the Class C Notes and the Reserve Account. Credit enhancement of the Class C Notes is provided by the Reserve Account. Current credit enhancement as a percentage of the outstanding Notes is 7.30% (Class A), 4.30% (Class B) and 1.30% (Class C). The Reserve Account is amortising with a target balance equal to 1.30% of the outstanding Notes. The transaction also has a liquidity facility that can be drawn upon to cover interest shortfalls should the Reserve Account be insufficient.

The Group is the Swap Counterparty, Account Bank, Floating Rate GIC Provider and Liquidity Facility Provider. The DBRS public rating of the Group is above the Minimum Institution Rating, given the rating assigned to the Class A Notes as described in the DBRS Legal Criteria for European Structured Finance Transactions and DBRS Derivative Criteria for European Structured Finance Transactions.

Notes:
All figures are in euro unless otherwise noted.

The principal methodology applicable is Master European Residential Mortgage-Backed Securities Rating Methodology and Jurisdictional Addenda.

Other methodologies and criteria referenced in this transaction are listed at the end of this press release and can be found at http://www.dbrs.com/about/methodologies.

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

The sources of information used for this rating include periodic investor reports provided by ATC Financial Services B.V. (the Issuer Administrator).

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.

The last rating action on this transaction took place on 23 January 2014, when the rating on each class of Notes was confirmed.

Information regarding DBRS ratings, including definitions, policies and methodologies, is available at www.dbrs.com.

To assess the impact of the changing the transaction parameters on the rating, DBRS considered the following stress scenarios as compared with the parameters used to determine the rating (the Base Case):

-- DBRS expected a lifetime base case Probability of Default (PD) and Loss Given Default (LGD) for the pool based on a review of the current receivables. Adverse changes to asset performance may cause stresses to base case assumptions and therefore have a negative effect on credit ratings.
-- The base case PD and LGD of the current pool of mortgages for the Issuer are 0.58% and 24.11%, respectively. The corresponding levels at each rating category are AAA (sf), 16.49% and 45.06%; AA (sf), 9.52% and 38.92%; and, BBB (low) (sf), 2.88% and 29.97%.
-- The Risk Sensitivity overview below illustrates the ratings expected if the PD and LGD increase by a certain percentage over the base case assumption. For example, if the LGD increases by 50%, the rating of the Class A Notes would be expected to be lowered to AA (high) (sf), assuming no change in PD. If the PD increases by 50%, the rating for the Class A Notes would be expected to be lowered to AA (low) (sf), assuming no change in PD. Furthermore, if both the PD and LGD increase by 50%, the rating of the Class A Notes would be expected to be lowered to AA (low) (sf).

Class A Risk Sensitivity:
-- 25% increase in LGD, expected rating of AA (high) (sf)
-- 50% increase in LGD, expected rating of AA (high) (sf)
-- 25% increase in PD, expected rating of AA (high) (sf)
-- 50% increase in PD, expected rating of AA (high) (sf)
-- 25% increase in PD and 25% increase in LGD, expected rating of AA (high) (sf)
-- 25% increase in PD and 50% increase in LGD, expected rating of AA (sf)
-- 50% increase in PD and 25% increase in LGD, expected rating of AA (sf)
-- 50% increase in PD and 50% increase in LGD, expected rating of AA (low) (sf)

Class B Risk Sensitivity:
-- 25% increase in LGD, expected rating of AA (sf)
-- 50% increase in LGD, expected rating of A (high) (sf)
-- 25% increase in PD, expected rating of AA (low) (sf)
-- 50% increase in PD, expected rating of A (high) (sf)
-- 25% increase in PD and 25% increase in LGD, expected rating of A (high) (sf)
-- 25% increase in PD and 50% increase in LGD, expected rating of A (sf)
-- 50% increase in PD and 25% increase in LGD, expected rating of A (sf)
-- 50% increase in PD and 50% increase in LGD, expected rating of BBB (high) (sf)

Class C Risk Sensitivity:
-- 25% increase in LGD, expected rating of BBB (low) (sf)
-- 50% increase in LGD, expected rating of BBB (low) (sf)
-- 25% increase in PD, expected rating of BBB (low) (sf)
-- 50% increase in PD, expected rating of BBB (low) (sf)
-- 25% increase in PD and 25% increase in LGD, expected rating of BBB (low) (sf)
-- 25% increase in PD and 50% increase in LGD, expected rating of BBB (low) (sf)
-- 50% increase in PD and 25% increase in LGD, expected rating of BBB (low) (sf)
-- 50% increase in PD and 50% increase in LGD, expected rating of BB (high) (sf)

For further information on DBRS historic default rates published by the European Securities and Markets Administration 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: Alessio Pignataro
Initial Rating Date: 18 November 2010
Initial Rating Committee Chair: Claire Mezzanotte

Lead Surveillance Analyst: Vito Natale
Rating Committee Chair: Diana Turner

DBRS Ratings Limited
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Mincing Lane
London
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United Kingdom

Registered in England and Wales: No. 7139960

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

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