DBRS Confirms the Ratings on the Notes Issued by PCL Funding I Limited

DBRS, Inc. (DBRS) has today confirmed the rating of the Term Notes and the Variable Funding Notes (collectively, the Notes) issued by PCL Funding I Limited at A (high) (sf).

The confirmation is in connection with the amendment to the Master Framework Agreement which includes:

-- Inserting the definition for Restricted Eligible Intermediary;
-- Modifying the definition of Eligible Intermediary; and
-- Modifying the definition of Eligible Receivables.

The amendment addresses the eligibility of an intermediary and the receivables in relation to possible insolvency of an intermediary. The purpose of this amendment is to allow the outstanding receivables, which are not delinquent, to continue to be funded in the Facility following the insolvency of a certain intermediary. The amendment also clarifies the eligibility definition of the Personal Receivable as it relates to any current receivables outstanding from an insolvent intermediary.

The maximum issuance amount for the Term Notes is 400 million and 750 million for the Variable Funding Notes.

The assets securing the Notes are a revolving pool of commercial and consumer financing agreements originated primarily in the United Kingdom and financing non-life insurance premiums, sport and leisure membership fees, professional membership fees and private school tuition. The committed revolving period of the Facility following the amendment will expire in November 2017 and the Facility has a final maturity in 2019. Lloyds Bank plc serves as Administrative Agent and the Facility has several committed lenders.

Notes:
All figures are in GBP unless otherwise noted.

The principal methodology applicable is Rating U.S. Structured Finance Transactions (December 2014), which can be found on www.dbrs.com at http://www.dbrs.com/about/methodologies. Other methodologies and criteria referenced in this transaction are listed at the end of this press release.

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 performance data relating to the receivables provided by Premium Credit Limited. 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 November 7, 2013, when the ratings on the Notes of PCL Funding I Limited were upgraded to A (high) (sf).

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

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.

This credit rating has been issued outside the European Union (EU) and is endorsed by DBRS Ratings Limited. It may be used for regulatory purposes by financial institutions in the EU.

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

Last Rating Date: November 7, 2013
Lead Rating Analyst: Sergey Moiseenko
Rating Committee Chair: Chuck Weilamann

DBRS, Inc.
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New York, NY 10005
USA

The principal methodologies applicable are:

“Rating U.S. Structured Finance Transactions”
“Legal Criteria for U.S. Structured Finance”
“Operational Risk Assessment for U.S. ABS Servicers”
“Unified Interest Rate Model for Rating U.S. Structured Finance Transactions”

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