DBRS Downgrades LLA Rating Related to Versailles Assets LLC RS Funding, Inc.

DBRS, Inc. (DBRS) downgraded the rating of the Liquidity Loan Agreement (LLA) relating to RS Funding, Inc. from AA (high) (sf) to AA (sf). The rationale for the downgrade was pursuant to an amendment executed on September 20, 2017, to the transaction documentation that changed the credit reserve stress factors in the loss and dilution reserves from 2.50 (AAA commensurate) to 2.25 (AA commensurate). Overall, the transaction is structured to be consistent with that of an AA trade receivable transaction. RS Funding, Inc. is a transaction within Versailles Assets LLC, a commercial paper conduit sponsored and administered by Natixis, New York Branch.

The LLA relating to RS Funding, Inc. was credit assessed to a credit term securitization standard appropriate to the asset class of the loan. Key elements of this analysis include the integrity of the transaction structure, the creditworthiness of the underlying obligors and the enforceability of payment from such obligors under all circumstances.

The sources of information used for this rating include parties involved in the rating, including, but not limited to, Versailles Assets LLC; RS Funding, Inc.; and Natixis. DBRS considers the information available to it for the purposes of providing this rating to be satisfactory.

DBRS will monitor the LLA and its associated transaction for changes in credit quality.

The ratings address the timely payment of interest and principal.

Notes:
The principal methodology is Trade Receivables, which can be found on our website under Methodologies.

This rating was not initiated at the request of the rated entity.

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.

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