DBRS Finalizes Provisional Ratings on Ascentium Equipment Receivables 2016-1 Trust

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following Series 2016-1 notes issued by Ascentium Equipment Receivables 2016-1 Trust (Ascentium):

-- Class A-1 rated R-1 (high) (sf)
-- Class A-2 rated AAA (sf)
-- Class A-3 rated AAA (sf)
-- Class B rated AAA (sf)
-- Class C rated A (high) (sf)
-- Class D rated BBB (high) (sf)
-- Class E rated BB (high) (sf)

The ratings assigned by DBRS to each class of notes are based on the following considerations:
-- Credit enhancement available to each class of notes is sufficient to pay timely periodic interest and principal by the final maturity date on each class of notes in DBRS’s cash flow modeling analysis.
-- Ascentium’s management has considerable experience and expertise in the equipment leasing market.
-- The expected Asset Pool is granular and of relatively high credit quality.
-- DBRS views Ascentium as an acceptable originator and servicer of the small-ticket equipment collateral.
-- A satisfactory review of the legal structure and presence of legal opinions that address true sale of the assets to the Issuer, non-consolidation of the assets, which are held by the special-purpose vehicle, with the assets of Ascentium, and valid first-priority security interest of the Indenture Trustee in the assets. The transaction is also reviewed for consistency with the DBRS “Legal Criteria for U.S. Structured Finance.”

Notes:
The applicable methodology is Rating U.S. Equipment Lease and Loan Securitizations, which can be found on our website under Methodologies.

The full report providing additional analytical detail is available by clicking on the link 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.