DBRS Confirms Rating on HERO Funding Trust 2016-1

DBRS, Inc. (DBRS) confirmed the AA (sf) rating on the Class A Notes (the Notes) issued by HERO Funding Trust 2016-1. The confirmation is based on credit enhancement levels being sufficient to cover DBRS’s expected losses at the Notes’ current rating level.

The rating is based on DBRS’s review of the following analytical considerations:
-- Transaction capital structure, proposed rating and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to origination, underwriting and servicing.
-- The credit quality of the collateral pool and historical performance.

Notes:
The principal methodology is 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.

Please see the attached appendix for additional information regarding the sensitivity of assumptions used in the rating process.

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