DBRS Discontinues, Confirms Ratings on Engs Commercial Finance Trust 2015-1 Notes

DBRS, Inc. (DBRS) has today reviewed five ratings from Engs Commercial Finance Trust 2015-1. Of the five outstanding publicly rated classes reviewed, four were confirmed and one class was discontinued due to full repayment.

The 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.
-- The credit quality of the collateral pool and historical performance.

The confirmation of the outstanding ratings are a result of the increased credit enhancement levels. DBRS notes an increase in 90+ delinquencies over the last two payment dates as a result of the continuing seasoning of the collateral pool, combined with a deceleration in the transportation industry. The listlessness in the transportation segment has in turn affected inventory levels and resale values, thus extending realization times. However, the current recovery rate level is expected to increase as more equipment is sold out of inventory. DBRS will continue to monitor the performance of this transaction with an expectation of observing higher recovery rates and reduction in the cumulative net loss in the upcoming months.

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

The applicable methodology is the DBRS Master U.S. ABS Surveillance Methodology, which can be found on our website under Methodologies.

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.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.