DBRS Assigns Provisional Ratings to HFX Funding 2017-1

DBRS, Inc. (DBRS) has today assigned provisional ratings to the following classes of Notes issued by HFX Funding 2017-1:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)

All trends are Stable.

To assign ratings to the Class A-1, Class A-2, Class A-3, Class B, Class C and Class D Notes, DBRS used a combination of its “North American CMBS Multi-borrower Rating Methodology” and “North American Single-Asset/Single-Borrower Methodology” to construct a worst-case pool based on concentration limits and eligibility requirements for each rating confirmation event, as defined in the Indenture, Schedule 4 and Schedule 5 as it relates to the minimum subordination requirements, including amendments for each class. The $300 million trust is expected to be fully funded within six months of the closing date, which is April 13, 2017.

The ratings assigned by DBRS contemplate timely payments of distributable interest and ultimate payment of principal by the legal final maturity date in March 2035.

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

The principal methodologies are North American CMBS Multi-borrower Rating Methodology, North American Single-Asset/Single-Borrower Methodology, DBRS Commercial Real Estate Property Analysis Criteria and Legal Criteria for U.S. Structured Finance, which can be found on dbrs.com under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.