Omaha, NE (PRWEB) February 8, 2008
DBRS has today rated the $100 million Maximum Facility Amount issued by Axis Capital Funding, LLC (ACF) at BBB. The transaction closed in February 2007 and is currently funded on WestLB AG's balance sheet. Credit enhancement is 11.0% and is composed of overcollateralization and a reserve account. The DBRS rating incorporates the following factors:
(1) Net-loss levels have been conservatively sized.
(2) Credit enhancement can support net losses under various scenarios with multiples that are well within the BBB range.
(3) The funding is actively managed by WestLB (rated A (high)/R-1 (middle) by DBRS).
(4) WestLB is the swap provider in the transaction.
(5) The facility does not fund residuals. This is a small part of the company's business to date, but even if it were to start originating true leases, the facility would not give any credit to the residual.
(6) Facility concentration limits ensure diversification is maintained. There are concentration levels that address single obligors, the top obligors, equipment types, vendors and business lines.
(7) Wells Fargo Bank, N.A. is the backup servicer for this facility and is an experienced servicer in the equipment sector.
(8) Leases are generated through two channels: direct and indirect leases. The indirect, or brokered, business channel is subject to the same level of stringent credit guidelines as those leases that are originated via direct means.
(9) Performance triggers are included in the facility. These triggers are designed to stop funding and or increase the credit enhancement.
CONCERNS AND MITIGANTS
(1) Axis Capital Inc. is a private entity that originates leases that are eligible for the facility. The company has been in the equipment-leasing business for nearly 12 years.
(2) The obligors in the secured facility are the businesses and/or the owners of the small businesses. These obligors are always subject to macroeconomic trends. Axis Capital Inc.'s credit process is designed to credit score each applicant, and for larger ticket sizes, it will also apply additional underwriting criteria.
All figures are in U.S. dollars unless otherwise noted.
For more information on this credit or on this industry, visit http://www.dbrs.com or contact us at info @ dbrs.com.
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Issuer Debt Rated Rating Action Rating Trend Notes Latest Event
Axis Capital Funding, LLC Maximum Facility Amount New Rating BBB -- Jan 29, 2008
Senior Vice President - U.S. Structured Finance RMBS/ABS
+1 212 806 3253
coconnell @ dbrs.com
Issuers in This
Axis Capital Funding, LLC