DBRS Confirms Ratings on the Callidus ABL Corporation Series 2016-1 Loans

DBRS, Inc. (DBRS) confirmed the ratings on the Series 2016-1 Loans issued by Callidus ABL Corporation (the Borrower) as follows:

-- Series 2016-1 Class A Loans confirmed at AAA (sf)
-- Series 2016-1 Class B Loans confirmed at AA (sf)
-- Series 2016-1 Class C Loans confirmed at A (sf)
-- Series 2016-1 Class D Loans confirmed at BBB (sf)

The DBRS ratings on the Series 2016-1 Class A Loans and the Series 2016-1 Class B Loans address the Borrower’s ability to make timely payments of interest and ultimate payment of principal on or before the Stated Maturity occurring in December 2021. The DBRS ratings on the Series 2016-1 Class C Loans and the Series 2016-1 Class D Loans address the Borrower’s ability to make ultimate payments of interest and principal on or before the Stated Maturity.

The Series 2016-1 Loans were issued pursuant to the Loan Financing and Servicing Agreement dated as at December 1, 2016, among Callidus ABL Corporation, as Borrower; Callidus Capital Corporation, as Equityholder and Collateral Manager; Deutsche Bank Trust Company Americas, as Administrative Agent, Collateral Custodian and Securities Intermediary; the Agents party thereto; and the Lenders from time to time party thereto. DBRS considers Callidus Capital Corporation as an acceptable collateralized loan obligation (CLO) manager.

Callidus ABL Corporation is a cash flow securitization collateralized by a portfolio of middle market U.S. and Canadian asset-backed corporate loans. The portfolio is managed by Callidus Capital Corporation.

To assess portfolio credit quality, DBRS provides a credit estimate or internal assessment for each non-financial corporate obligor in the portfolio not rated by DBRS. Credit estimates are not ratings; rather, they represent a primarily model-driven default probability for each obligor that is used in assigning the rating to the facility.

Notes:
The principal methodology is Rating CLOs and CDOs of Large Corporate Credit, 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.

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