DBRS Assigns New Ratings to A10 Bridge Asset Financing 2015-A, LLC

DBRS, Inc. (DBRS) has today assigned the following ratings to A10 Bridge Asset Financing 2015-A, LLC (the Issuer):

-- Class A-1 at AAA (sf)
-- Class B-1 at A (low) (sf)
-- Class C-1 at BBB (sf)
-- Class D-1 at BBB (low) (sf)
-- Class E-1 at BB (sf)
-- Class F-1 at B (sf)

All trends are Stable. Classes A-1, B-1, C-1 and D-1 represent the offered certificates. Classes E-1 and F-1 are non-offered certificates and along with the Membership Interests, have been retained by an affiliate of the Issuer.

In conjunction with these rating actions, DBRS has discontinued and withdrawn the ratings on the Class A Senior Variable Funding Notes and Class B Senior Subordinated Variable Funding Notes as the transaction has been fully funded and formally converted into notes by the Issuer.

The collateral consists of 24 loans, secured by 33 commercial properties, all originated by A10 Capital, LLC (A10). A10 specializes in mini-perm loans that typically have three- to five-year terms with extension options and are used to finance properties until they are fully stabilized. The borrowers are often new equity sponsors of fairly well-positioned assets within their respective markets. A10’s initial advance is the senior debt component typically for the purchase of a real estate-owned acquisition or discounted payoff. The properties are often transitioning, with potential upside in the cash flow; however, DBRS does not give full credit to the stabilization if there are no holdbacks or if other loan structural features in place were insufficient to support such treatment. Furthermore, even with structure provided, DBRS generally does not assume the assets will stabilize above market levels.

The ratings assigned by DBRS contemplate timely payments of distributable interest and, in the case of the senior subordinate notes other than the Class A-1 Notes, ultimate recovery of Deferred Collateralized Note Interest Amounts (inclusive of interest payable thereon at the applicable rate, to the extent permitted by law). Accordingly, DBRS will assign its Interest in Arrears designation to any class of Offered Notes (other than the Class A-1 Notes) during any Interest Accrual Period when such class accrues Deferred Collateralized Note Amounts.

The ratings assigned to the Notes by DBRS are based exclusively on the credit provided by the transaction structure and underlying trust assets. All classes are subject to ongoing surveillance, which could result in upgrades or downgrades by DBRS after the date of issuance.

Notes:
The principal methodology is the North American CMBS Multi-borrower Rating Methodology (March 2017), which can be found on dbrs.com under Methodologies.

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

With regard to due diligence services, DBRS was not provided with the Form ABS Due Diligence-15E (Form-15E), which contains the description of the information that the third party reviewed in conducting the due diligence services and a summary of the findings and conclusions.

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