DBRS Places CAN Capital Funding LLC Series 2014-1 Under Review with Negative Implications

DBRS, Inc. (DBRS) has today placed the Series 2014-Notes, Class A and Series 2014-Notes, Class B (the Notes), rated A (sf) and BBB (low) (sf), respectively, of CAN Capital Funding LLC Series 2014-1 Under Review with Negative Implications. This action follows the announcement that the Chief Executive Officer of CAN Capital and two other executives have been put on leave of absence. Additionally, the company is focused on improving collection practices and identifying underperforming assets. As at the November 2016 payment date, a Rapid Amortization Event has occurred, as actual overcollateralization levels fell below the required overcollateralization levels for the Notes. DBRS will continue to monitor the situation as it relates to the company’s senior management changes as well as the performance of the transaction.

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

-- Transaction capital structure, 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.

Notes:
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 the attached appendix for additional information regarding the sensitivity of assumptions used in the rating process.