DBRS Takes Rating Action on BCC Funding XII LLC

DBRS, Inc. (DBRS) confirmed the Loan rating of BCC Funding XII LLC at A (sf). On September 1, 2017, DBRS placed the A (sf) rating of the Loan Under Review with Negative Implications because of potential implications related to the regulations issued by the U.S. bank regulators and the U.S. Commodity Futures Trading Commission with respect to a “two-way” margin posting obligation on non-cleared swaps. Following a review of the transaction, DBRS has determined that the outstanding rating is supported after assessing potential interest rate stress and the requirement to post collateral under the regulatory rules. Consequently, DBRS confirms the outstanding rating of A (sf) for the Loan and removes the Under Review with Negative Implications status as credit enhancement is sufficient to cover DBRS’s expected losses at their current rating levels.

The issuer’s rating is based on DBRS’s review of the following analytical considerations:
-- Transaction capital structure and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to origination, underwriting and servicing.
-- 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 initially participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

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