DBRS Finalizes Provisional Ratings on Amur Equipment Finance Receivables VII LLC, Equipment Contract-Backed Notes, Series 2019-1

DBRS, Inc. (DBRS) finalized its provisional ratings on the following classes of equipment contract-backed notes issued by Amur Equipment Finance Receivables VII LLC (the Issuer):

-- $48,000,000 Series 2019-1, Class A-1 Notes at R-1 (high) (sf)
-- $170,802,000 Series 2019-1, Class A-2 Notes at AAA (sf)
-- $19,074,000 Series 2019-1, Class B Notes at AA (sf)
-- $8,696,000 Series 2019-1, Class C Notes at A (sf)
-- $11,081,000 Series 2019-1, Class D Notes at BBB (sf)
-- $6,311,000 Series 2019-1, Class E Notes at BB (sf)
-- $5,470,000 Series 2019-1, Class F Notes at B (sf)

The ratings are based on a review by DBRS of the following analytical considerations:

-- Transaction capital structure, proposed ratings as well as 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 four-month prefunding period.
-- The capabilities of Amur Equipment Finance, Inc. (Amur EF) with regard to originations, underwriting and servicing. DBRS performed an operational review of Amur EF and considers the company to be an acceptable originator and servicer of equipment-backed lease and loan contracts. In addition, Wells Fargo Bank, N.A. (rated AA with a Stable trend by DBRS), an experienced servicer of equipment lease-backed securitizations, will be the backup servicer for the transaction.
-- The legal structure and presence of legal opinions that address the true sale of the assets to the Issuer, the non-consolidation of the special-purpose vehicle with Amur EF, 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.”

Amur EF (formerly known as Axis Capital, Inc.) is a 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 84.14% of initial hard credit enhancement (as a percentage of the collateral balance) provided by the subordinated notes in the pool (78.94%), the Reserve Account (1.25%) and OC (3.95%). The rating on the Class A-2 Notes reflects 23.25% of initial hard credit enhancement provided by the subordinated notes in the pool (18.05%), the Reserve Account (1.25%) and OC (3.95%). The ratings on the Class B, Class C, Class D, Class E and Class F Notes reflect 16.45%, 13.35%, 9.40%, 7.15% and 5.20% 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 & Criteria.

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.

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

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