DBRS Assigns Ratings to Callidus ABL Corporation Series 2016-1 Loans

DBRS, Inc. (DBRS) has today assigned the following ratings to the loans (collectively, the Series 2016-1 Loans) issued by Callidus ABL Corporation (the Borrower):

-- $51,250,000 Series 2016-1 Class A Loans due November 2021 rated AAA (sf)
-- $11,500,000 Series 2016-1 Class B Loans due November 2021 rated AA (sf)
-- $7,000,000 Series 2016-1 Class C Loans due November 2021 rated A (sf)
-- $5,250,000 Series 2016-1 Class D Loans due November 2021 rated BBB (sf)
-- $11,750,000 Series 2016-1 Class E Loans due November 2021 rated BB (low) (sf)

The Series 2016-1 Loans were issued pursuant to the Loan Financing and Servicing Agreement dated as of December 1, 2016, among Callidus ABL Corporation, as Borrower; Callidus Capital Corporation, as Equityholder and Collateral Manager; Deutsche Bank Trust Company Americas, as Administrative Agent, Collateral Custodian and Securities Intermediary; the Agents party there to; and the Lenders from time to time party thereto.

Callidus ABL Corporation is a cash flow securitization, which will be collateralized by a portfolio of middle market U.S. and Canadian asset-backed corporate loans. The closing portfolio will include collateral loans with an aggregate par balance of $125,000,000. Callidus Capital Corporation will act as the Collateral Manager of the Borrower. The Borrower is a corporation incorporated under the laws of the Province of Ontario.

The ratings reflect the following:

(1) The Loan Financing and Servicing Agreement dated December 1, 2016.

(2) The integrity of the transaction structure.

(3) DBRS’s assessment of the portfolio quality.

(4) Adequate credit enhancement to withstand projected collateral loss rates under various cash flow stress scenarios.

(5) DBRS’s assessment of the origination, servicing and collateralized loan obligation management capabilities of Callidus Capital Corporation.

To assess portfolio credit quality, DBRS provides a credit estimate or internal assessment for each non-financial corporate obligor in the portfolio, not rated by DBRS. Credit estimates are not ratings; rather, they represent a primarily model-driven default probability for each obligor that is used in assigning a rating to the facility.

The DBRS ratings on the Series 2016-1 Class A Loans and the Series 2016-1 Class B Loans address the Borrower’s ability to make timely payments of interest and ultimate payment of principal on or before the Maturity Date (as defined in the Loan Financing and Servicing Agreement referred to above). The DBRS ratings on the Series 2016-1 Class C Loans, the Series 2016-1 Class D Loans and the Series 2016-1 Class E Loans address the Borrower’s ability to make ultimate payments of interest and principal on or before the Maturity Date.

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

The applicable methodology is Rating CLOs and CDOs of Large Corporate Credit, which can be found on our website under Methodologies.

These ratings are endorsed by DBRS Ratings Limited for use in the European Union.

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