DBRS Places Obligations of BCC Funding XII LLC under the Loan and Servicing Agreement Under Review with Negative Implications

DBRS, Inc. (DBRS) placed the outstanding rating of A (sf) on the obligations of BCC Funding XII LLC (the Borrower) under the Loan and Servicing Agreement, dated as of March 11, 2016 (the Agreement) Under Review with Negative Implications. This action relates to the hedging requirements specified in the Agreement and is prompted by the enforceability of regulations issued by the U.S. bank regulators and the U.S. Commodity Futures Trading Commission with respect to a “two-way” margin posting obligation on non-cleared swaps.

The rating is 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.

Notes:
The rating is endorsed by DBRS Ratings Limited for use in the European Union.

The principal 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.