DBRS Confirms Ratings on A10 Revolving Asset Financing I, LLC

DBRS, Inc. (DBRS) has today confirmed the ratings of A10 Revolving Asset Financing I, LLC as listed below:

-- $200 million Class A Senior Variable Funding Notes at AA (low) (sf)
-- $10 million Class B Senior Subordinated Floating Rate Notes at BBB (high) (sf)

The trends are Stable.

The ratings are based on a pool composed of commercial real estate loans that represents a worst-case pool construct derived from the concentration limits and eligibility requirements as defined in the Trust Indenture. The transaction originally closed in October 2012 and was extended and upsized in October 2013. A10 Capital has extended its revolving financing facility after finalizing terms with its lender. DBRS has received documentation and finalized terms of the renewal and, upon review, has confirmed the ratings of the notes, removing each Class of notes from Under Review – Developing.

DBRS used its static CMBS methodology to construct a worst-case pool based on the concentration limits and eligibility requirements as defined in the Trust Indenture, then applied its liquidating trust methodology to stress the transaction cash flows of the underlying real estate, and employed liquidation timelines associated with expedited non-performing loans to evaluate the transaction and assign ratings to the Class A and Class B notes.

The ratings address the likelihood of the timely receipt by the Class A noteholders of interest and the ultimate repayment of principal on or before the legal final maturity date of A10 Revolving Asset Financing I, LLC. The Class A notes mature on the payment date occurring seven years following the date of latest extension of the facility. The ratings of Class B notes address the ultimate repayment of principal and, with regard to interest, the likelihood of the timely receipt by the Class B noteholders of interest to the extent not deferred as provided for in the indenture and, if deferred, ultimate repayment of interest by its final legal maturity date. The Class B notes shall mature on the payment date occurring three months following the legal final maturity date of the Class A notes.

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

The applicable methodologies are CMBS Rating Methodology, Rating North American Commercial Real Estate Non-Performing Loan Liquidating Trusts and Legal Criteria for U.S. Structured Finance, which can be found on our website under Methodologies.

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