DBRS Withdraws and Assigns New Provisional Ratings to Amur Equipment Finance Receivables VI LLC, Equipment Contract Backed Notes, Series 2018-2

DBRS, Inc. (DBRS) discontinued-withdrew the existing provisional ratings on the following classes of equipment contract backed notes that were to be issued by Amur Equipment Finance Receivables VI LLC (the Issuer):

-- $59,000,000 Series 2018-2, Class A-1 Notes at R-1 (high) (sf)
-- $131,806,000 Series 2018-2, Class A-2 Notes at AAA (sf)
-- $8,850,000 Series 2018-2, Class B Notes at AA (sf)
-- $7,198,000 Series 2018-2, Class C Notes at A (sf)
-- $9,558,000 Series 2018-2, Class D Notes at BBB (sf)
-- $5,546,000 Series 2018-2, Class E Notes at BB (sf)
-- $4,602,000 Series 2018-2, Class F Notes at B (sf)

DBRS simultaneously assigned new provisional ratings to the following classes of equipment contract-backed notes to be issued by the Issuer:

-- $64,000,000 Series 2018-2, Class A-1 Notes at R-1 (high) (sf)
-- $147,341,000 Series 2018-2, Class A-2 Notes at AAA (sf)
-- $9,803,000 Series 2018-2, Class B Notes at AA (sf)
-- $7,973,000 Series 2018-2, Class C Notes at A (sf)
-- $10,586,000 Series 2018-2, Class D Notes at BBB (sf)
-- $6,143,000 Series 2018-2, Class E Notes at BB (sf)
-- $5,098,000 Series 2018-2, Class F Notes at B (sf)

The assignment of new provisional ratings is consistent with the cash flow assumptions for the respective rating categories. The new provisional ratings correspond to a larger structure that is based on a collateral pool that had been reviewed by DBRS.

The provisional ratings are based on a review by DBRS of the following analytical considerations:
-- Transaction capital structure, proposed ratings and sufficiency of available credit enhancement, which includes overcollateralization (OC), subordination and amounts held in the reserve account, to support the DBRS-projected cumulative net loss assumption under various stressed cash flow scenarios.
-- The proposed concentration limits mitigating the risk of material migration in the collateral pool’s composition during the approximately three-month prefunding period.
-- The capabilities of Amur Equipment Finance, Inc. (AEF) with regard to originations, underwriting and servicing. DBRS has performed an operational review of AEF and considers the entity to be an acceptable originator and servicer of equipment-backed lease and loan contracts. In addition, Wells Fargo Bank, National Association (rated AA with a Stable trend by DBRS), an experienced servicer of equipment lease-backed securitizations, will be the back-up servicer for the transaction.
-- The collateral pool primarily consists of essential-use equipment, with approximately 94.9% of the contracts supported by personal guarantees with a weighted-average non-zero guarantor FICO score of approximately 704.
-- The legal structure and presence of legal opinions that will address the true sale of the assets to the Issuer, the non-consolidation of the special-purpose vehicle with AEF, that the trustee has a valid first-priority security interest in the assets and the consistency with the DBRS “Legal Criteria for U.S. Structured Finance.”

AEF (formerly known as Axis Capital, Inc.) is a privately owned commercial finance company providing equipment financing solutions to a broad range of small- to medium-sized businesses across all 50 states of the United States.

The rating on the Class A-1 Notes reflects 76.76% of initial hard credit enhancement (as a percentage of collateral balance) provided by the subordinated notes in the pool (71.52%), the Reserve Account (1.25%) and OC (4.00%). The rating on the Class A-2 Notes reflects 20.40% of initial hard credit enhancement provided by the subordinated notes in the pool (15.15%), the Reserve Account (1.25%) and OC (4.00%). The ratings on the Class B, Class C, Class D, Class E and Class F Notes reflect 16.65%, 13.60%, 9.55%, 7.20% and 5.25% of initial hard credit enhancement, respectively.

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

The principal methodology is Rating U.S. Equipment Lease and Loan Securitizations, which can be found on dbrs.com under Methodologies.

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.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrs.com.