DBRS Maintains LEAF Receivables Funding 6, LLC, Series 2011-1 Under Review with Negative Implications

DBRS, Inc. (DBRS) has today maintained the ratings on the LEAF Receivables Funding 6, LLC Equipment Contract Backed Notes, 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 placement of the ratings Under Review with Negative Implications had originally taken place on June 24, 2013, as a result of a breach of a delinquency trigger (as further described in the transaction documents).

The level of seriously delinquent leases has recently become large enough that, depending on the strategy the Servicer uses in its management, could jeopardize the security of investors in the most subordinate tranche of the transaction, Class E-2, in future months. Currently, the collateral pool factor is 7.44%, 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, rated BBB (sf)
--Class E-1, rated BB (sf)
--Class E-2, rated B (low) (sf)

DBRS will continue to monitor delinquency aging, defaults and recoveries, and will resolve the Under Review with Negative Implications 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 previously discontinued the AAA (sf) rating of the Class A Notes, the AA (sf) rating on the Class B Notes and the A (sf) rating on the Class C Notes because they have been repaid in full.

Notes:
The applicable methodology is DBRS Master U.S. ABS Surveillance Methodology (October 2014), which can be found on our website under Methodologies.

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