DBRS Assigns Rating to Cellco Partnership September 25, 2015, Pool Purchase Investment

DBRS, Inc. (DBRS) has today assigned an A (sf) rating to the September 25, 2015, pool purchase and scheduled yield (the Investment) of Cellco Partnership, pursuant to the Receivables Purchase Agreement dated as of March 27, 2015, among various wholly and majority-owned subsidiaries of Cellco Partnership, a Delaware partnership, each a seller (the Sellers), Cellco Edge LLC, as seller agent and a Seller, Cellco Partnership, as the servicer, the pool purchaser agents, various pool purchasers, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the administrative agent (the Purchase Agreement). The Investment was made in an amortizing pool of receivables that were originated by Cellco Partnership and its subsidiaries for obligors to finance the purchase of mobile phones and other devices sold by the Sellers under the Purchase Agreement.

Rating Rationale:
The ratings are based upon a review by DBRS of the following analytical considerations:
-- Transaction advance rate, form and sufficiency of available credit enhancement and assigned ratings. The transaction benefits from (a) credit enhancement in the form of overcollateralization, implied excess spread and a full turbo structure. Credit enhancement levels are sufficient to support the DBRS expected loss under various stress scenarios; and (b) other benefits provided by the structured Investment, including the following: (i) a discrete pool of assets via specified selection criteria; (ii) the application of conservative assumptions assumed in the stress analysis; and (iii) the inclusion of additional enhancement provided by cross-collateralization from outstanding pool purchases.
-- DBRS has performed an operational review of the servicer of the receivables and considers the entity to be an acceptable servicer of handset loans.
-- DBRS was provided sufficient performance data from program-originated contracts.
-- The transaction pool contained high quality collateral characteristics.
-- The legal structure and presence of legal opinions, which will address the true sale of the assets to the purchasers, the non-consolidation of the special-purpose vehicles with Cellco Partnership, and that the purchasers have a valid first priority security interest in the assets and the consistency with the DBRS “Legal Criteria for U.S. Structured Finance Transactions” methodology.

Notes:
For the purpose of clarity, the September 25, 2015, Investment has been categorized under Debt Rated in the Rating table below.

The applicable methodology is Rating U.S. Structured Finance Transactions (December 2014), including the appendix related to rating U.S. Consumer Loan ABS Transactions, which can be found on our website under Methodologies.

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