DBRS Finalizes Provisional Ratings on Lendmark Funding Trust 2016-A

DBRS, Inc. (DBRS) has today finalized its provisional ratings to the following notes issued by Lendmark Funding Trust 2016-A:

-- Series 2016-A Notes, Class A rated AA (sf)
-- Series 2016-A Notes, Class B rated A (sf)
-- Series 2016-A Notes, Class C rated BBB (sf)

The ratings are based upon a review by DBRS of the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms in which they have invested. For this transaction, the rating addresses the payment of timely interest on a monthly basis and principal by the legal final maturity date.
-- Lendmark’s capabilities with regards to originations, underwriting and servicing.
-- The credit quality of the collateral and performance of Lendmark’s consumer loan portfolio. DBRS has utilized a hybrid approach in analyzing the Lendmark portfolio that incorporates elements of static pool analysis employed for assets such as consumer loans and revolving asset analysis, employed for such assets as credit card master trusts.
-- The legal structure and presence of legal opinions which address the true sale of the assets to the issuer, the non-consolidation of the special-purpose vehicle with Lendmark, and that the trust has a valid first-priority security interest in the assets and is consistent with the DBRS methodology Legal Criteria for U.S. Structured Finance.

Notes:
These ratings are endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are Rating U.S. Structured Finance Transactions and U.S. Credit Card Asset-Backed Securities, which can be found on our website under Methodologies.

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.

Please see the attached appendix for additional information regarding sensitivity of assumptions used in the rating process.