DBRS Ratings Limited Assigns Rating to Galleon-LeaseTrend Liquidity Agreement

DBRS Ratings Limited (DBRS) has today assigned an AA (sf) rating to the risk assumed by the liquidity banks pursuant to a liquidity agreement related to a receivables purchase agreement under which Galleon Capital LLC undertook to purchase certain leases form LeaseTrend AG. The rating addresses the timely payment of scheduled interest and the ultimate payment of principal on any liquidity loans in accordance with the liquidity agreement.

The rating is based upon a review by DBRS of the following analytical considerations:

•The transaction structure and form and sufficiency of available credit enhancement in light of the expected performance of the assets. Credit enhancement is in the form of over-collateralisation and a reserve fund. Credit enhancement levels are sufficient to support a AA (sf) rating.
•The ability of the transaction to withstand stressed cash flow assumptions and repay the liquidity banks according to the terms of the liquidity agreement.
•The transaction parties’ capabilities with regards to originations, underwriting and servicing as well as the capabilities and financial strength of State Street Bank and Trust Company as program administrator of Galleon Capital LLC.
•The soundness of the legal structure and the consistency with the DBRS Legal Criteria for European Structured Finance Transactions.

Note:
All figures are in Euros unless otherwise noted.

The principal methodologies applicable are Rating European Consumer Asset-Backed Securitisations and the DBRS Legal Criteria for European Structured Finance Transactions, which can be found on our website under Methodologies.

The sources of information used for this rating include performance data relating to the receivables provided by LeaseTrend AG and by State Street Bank and Trust Company. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

This is the first DBRS rating on this financial instrument.

For additional information on these ratings, please refer to the linking document located below.

Lead Analyst: Gareth Levington, Senior Vice President
Rating Committee Chair: Claire Mezzanotte
Initial Rating Date: 7 April 2011