DBRS Takes Actions on CAN Capital Funding LLC Series 2014-1

DBRS, Inc. (DBRS) has today removed the Under Review with Negative Implications status from the Series 2014-1 Notes, Class A (Class A Notes) and Series 2014-1 Notes, Class B (Class B Notes) of the CAN Capital Funding LLC Series 2014-1 structured finance asset-backed securities transaction. The rating of the Class A Notes has been confirmed at BBB (high) (sf). The rating of the Class B Notes has been downgraded to CC (sf). For the Class A Notes, credit enhancement is sufficient to absorb DBRS expected losses at the current rating level. For the Class B Notes, credit enhancement was not sufficient to absorb DBRS expected losses at the B (high) (sf) rating level. DBRS deems the new rating of CC (sf) to reflect DBRS expectations.

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 servicing.
-- The credit quality of the collateral pool and projected performance.

As of the July 2017 Monthly Servicing Statement, the principal balance of Class A Notes outstanding was $16,809,471 as reported in the Monthly Servicing Statement for the above-referenced transaction. The outstanding principal balance of Class B Notes was $20,000,000.00 as reported in the Monthly Servicing Statement. The Ending Eligible Aggregate Unamortized Funded Amount of the transaction as of the July 2017 Monthly Servicing Statement was $31,758,041. As such, the Notes currently do not benefit from credit enhancement in form of overcollateralization. Newly Non-Performing Assets were reported to be $2,036,774 as of the July 2017 Monthly Servicing Statement. In late June 2017, the company consummated a transaction with an alternative asset manager, Varadero Capital, L.P., that allowed the company to repay senior debt as well as make new loans and merchant cash advances. This may have an effect on the future performance of the CAN Capital Funding LLC Series 2014-1 transaction.

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

The principal methodology is the DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com 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.

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