DBRS Confirms Ratings on Global Commission Funding LLC’s Tranche A and Tranche B Advances

DBRS, Inc. (DBRS) confirmed the ratings on the Tranche A Advances and the Tranche B Advances (the Advances) issued by Global Commission Funding LLC at BBB (sf) and BB (sf), respectively.

RATING RATIONALE
The rating rationale includes the following key analytical considerations:

-- Transaction capital structure, current ratings 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.

The transaction is a senior secured revolving lending facility for the purpose of financing certain long-term care insurance and non-long-term care insurance commission streams with two tranches: the Tranche A Advances and the Tranche B Advances. Credit enhancement consists of overcollateralization, subordination of the Tranche B Advances (in the case of the Tranche A Advances) and excess spread, which results from the discount rate. Collateral and financial triggers are included to terminate the revolving period to the extent that actual collections are below projected commissions by a prescribed percentage on a six-month rolling basis.

Performance of the facility is within expectations. Credit enhancement for Tranche A and Tranche B is within required levels. The six-month rolling average of actual projections exceeded projected collections and is in compliance with termination trigger thresholds. All financial covenants are in compliance with their respective thresholds.

Credit enhancement for the Advances were within expected parameters and deemed sufficient to cover DBRS’s expected losses at their current respective levels.

Notes:
The principal methodology is DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies & Criteria.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS did have access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

This rating is endorsed by DBRS Ratings Limited for use in the European Union. The following additional regulatory disclosures apply to endorsed ratings:

This is the first rating action since the Initial Rating Date.

For further information on DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Lead Analyst: Jayce Fox, Senior Vice President, US ABS Surveillance – Global Structured Finance
Rating Committee Chair: Chris D’Onofrio, Managing Director, US ABS - Global Structured Finance
Initial Rating Date: March 29, 2018

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

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA