DBRS Finalizes Provisional Ratings on BCC Funding XIII LLC Equipment Contract Backed Notes, Series 2016-1

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following classes of Equipment Contract Backed Notes issued by BCC Funding XIII LLC (the Issuer):

-- $65,000,000, Series 2016-1, Class A-1 Notes rated R-1 (high) (sf)
-- $135,537,000, Series 2016-1, Class A-2 Notes rated AAA (sf)
-- $17,490,000, Series 2016-1, Class B Notes rated AA (sf)
-- $8,942,000, Series 2016-1, Class C Notes rated A (sf)
-- $11,704,000, Series 2016-1, Class D Notes rated BBB (sf)
-- $7,101,000, Series 2016-1, Class E Notes rated BB (sf)
-- $5,786,000, Series 2016-1, Class F Notes rated B (sf)

The ratings are based on DBRS’s review of the following analytical considerations:

-- Form and sufficiency of available credit enhancement and its ability to withstand the expected losses under various stressed cash flow modeling scenarios.
-- The presence of a replenishable (subject to availability of funds) and non-declining amount on deposit in the Reserve Account.
-- The asset pool does not contain any significant concentrations of obligors, vendors or geographies and consists of a diversified mix of the industries similar to those included in other small-ticket lease and loan securitizations rated by DBRS.
-- While the structure allows for an approximately three-month Prefunding Period during which the acquisition by the Issuer of new contracts into the asset pool will be permitted, the concentration limits will mitigate the risk of material migration in the asset pool’s composition or risk profile.
-- Balboa Capital Corporation’s management team is experienced and has a long track record of origination and servicing in the small-ticket equipment space.
-- The presence of Portfolio Financing Services Company, an experienced servicer of equipment lease backed securitizations, as the back-up servicer for this transaction.

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

The applicable methodology is Rating U.S. Equipment Lease and Loan Securitizations (June 2015), 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 the attached appendix for additional information regarding sensitivity of assumptions used in the rating process.

The full report providing additional information and 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.

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