DBRS Finalizes Provisional Ratings on LEAF Receivables Funding 11, LLC - Equipment Contract Backed Notes, Series 2016-1

DBRS, Inc. (DBRS) has today finalized the provisional ratings on the following classes issued by LEAF Receivables Funding 11, LLC – Equipment Contract Backed Notes, Series 2016-1:

-- $89,000,000 Class A1 at R-1 (high) (sf)
-- $97,000,000 Class A2 at AAA (sf)
-- $61,000,000 Class A3 at AAA (sf)
-- $36,008,000 Class A4 at AAA (sf)
-- $13,904,000 Class B at AAA (sf)
-- $14,432,000 Class C at AA (sf)
-- $11,440,000 Class D at A (sf)
-- $10,560,000 Class E1 at BBB (high) (sf)
-- $9,152,000 Class E2 at BB (high) (sf)

The DBRS ratings are based on DBRS’s review of the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to origination, underwriting and servicing.
-- Credit quality of the collateral pool and the historical performance of the LEAF Commercial Capital, Inc. portfolio.
-- The legal structure and legal opinions that address the true sale of the assets, the non-consolidation of the trust, that the trust has a valid first-priority security interest in the assets and the consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology.

The ratings on the Class A Notes reflect the 21.10% of initial hard credit enhancement provided by the subordinated notes in the pool, the Reserve Account (1.50%) and overcollateralization (2.70%). The ratings on the Class B, Class C, Class D, Class E1 and Class E2 Notes reflect 17.15%, 13.05%, 9.80%, 6.80% and 4.20% of initial hard credit enhancement, respectively.

Additional credit support may be provided from excess spread available in the structure. The notes are expected to be offered with a fixed rate of interest, determined using interpolated swaps plus a margin.

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

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

This rating was not initiated at the request of the rated entity.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

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

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.