DBRS Confirms and Upgrades Ratings of Collateralized Fund Obligation Notes Issued by MCA Fund I Holding LLC

DBRS, Inc. (DBRS) has taken the following rating actions on the classes of collateralized fund obligation (CFO) notes issued by MCA Fund I Holding LLC, as well as the Liquidity Loan Facility between MCA Fund I Holding LLC as Issuer and Barclays Bank PLC as Liquidity Lender (the Liquidity Facility), as follows:

-- Class A Notes confirmed at A (sf)
-- Class B Notes upgraded to A (low) (sf) from BBB (high) (sf)
-- Class C Deferrable Notes confirmed at BB (high) (sf)
-- Liquidity Facility confirmed at A (sf)

The Under Review with Positive Implications designation on the ratings of the Class B Notes and the Class C Deferrable Notes have been removed. The ratings of the Class B Notes and Class C Deferrable Notes were previously placed Under Review with Positive Implications on June 14, 2017. The removal of the Under Review with Positive Implications designation reflects the deleveraging of the rated notes and the consistency of the quarterly net cash inflows, which allowed the rating on the Class B Notes to be upgraded; however, the impact was more limited on the rating of the Class C Deferrable Notes.

The ratings on the Class A Notes, Class B Notes and the Liquidity Facility address the timely payment of interest and the ultimate payment of principal on or before their respective maturities. The rating on the Class C Deferrable Notes addresses the ultimate payment of interest and principal on or before their maturity.

The notes are backed by a portfolio of limited partnership interests in leveraged buyout, mezzanine debt and venture capital private equity funds. Each class of notes is able to withstand a percentage of tranche defaults from a Monte Carlo asset analysis commensurate with its respective rating.

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

The principal methodology is Rating U.S. Collateralized Fund Obligations Backed by Private Equity, 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 for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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