DBRS Confirms and Places Ratings of Collateralized Fund Obligation Notes Issued by MCA Fund I Holding LLC Under Review with Positive Implications

DBRS, Inc. (DBRS) has today taken the following rating actions on ratings 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 confirmed at BBB (high) (sf) and placed Under Review with Positive Implications
-- Class C Deferrable Notes confirmed at BB (high) (sf) and placed Under Review with Positive Implications
-- Liquidity Facility confirmed at A (sf)

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 maturity. The rating on the Class C Deferrable Notes addresses the ultimate payment of interest and principal on or before their maturity.

The Class B Notes and Class C Deferrable Notes ratings are Under Review with Positive Implications. The ratings on the Class B and Class C Notes are being placed Under Review with Positive Implications as a result of the rate of deleveraging of the rated notes and the consistency of quarterly Net Cash Inflows. DBRS views these trends as credit positive to the transaction. Generally, the conditions that lead to the assignment of reviews are resolved within a 90-day period.

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 principle 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. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.