DBRS Finalizes Provisional Ratings on HFX Funding 2017-1

DBRS, Inc. (DBRS) finalized its provisional ratings on 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 finalize ratings on 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 of the first loan contributed to the pool, which occurred on August 15, 2017.

The ratings finalized 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 and North American Single-Asset/Single-Borrower Methodology, which can be found on dbrs.com under Methodologies.

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

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.