DBRS Finalizes Provisional Ratings on the Asset-Backed Notes Issued by CCG Receivables Trust 2015-1

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following classes of asset-backed notes (the Notes) issued by CCG Receivables Trust 2015-1:

-- Class A-1 Notes rated R-1 (high) (sf)
-- Class A-2 Notes rated AAA (sf)
-- Class A-3 Notes rated AAA (sf)
-- Class B Notes rated A (sf)

The ratings are based on a review by DBRS of the following analytical considerations:
-- Subordination, overcollateralization (OC), cash held in the Reserve Account, available excess spread and other structural provisions create liquidity and credit support commensurate with the respective ratings for each class of the Notes. Under various cash flow modeling scenarios, the credit enhancement available to the transaction can withstand the target stress multiples of 5.70 times (x) with respect to the Class A Notes and 3.55x with respect to the Class B Notes, which are applied to the expected loss of 2.25%.
-- The transaction does not have a pre-funding period. In addition, booked residual values constitute only a small portion of the net book value of the Collateral as of the Cut-off Date.
-- Sequential amortization of the Notes, subordination, the non-declining, replenishable reserve amount and the OC floor are expected to create increasing-over-time credit enhancement for the Notes.
-- The Collateral composition is similar to that included in Commercial Credit Group Inc.’s (CCG) previous term securitizations, all of which have performed well within the expectations.
-- CCG continues to maintain strong competitive position in the mid-ticket equipment leasing space focusing on financing of the essential income-producing commercial equipment to small and medium-sized businesses. A substantial portion of the company’s new business is generated from repeat customers.
-- CCG is an experienced originator and servicer of equipment contract-backed securitizations. It currently originates and funds new loans and leases utilizing four committed revolving asset-backed warehouse lines with different lenders. CCG has also sponsored and acted as the servicer for four term securitizations backed by equipment loans and leases.
-- DBRS performed an on-site operational risk review and deems CCG to be an acceptable originator and servicer of equipment backed leases and loans. Portfolio Financial Servicing Company, which is an experienced servicer of equipment-backed collateral, will be the Back-up Servicer for the transaction.

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 Rating U.S. Equipment Lease and Loan Securitizations (June 2015), which can be found on our website under Methodologies.

The full report providing additional analytical detail is available by clicking on the link below or by contacting us at info@dbrs.com.