DBRS, Inc. (DBRS) confirmed its ratings of A (sf) on the Series 1 Note and Series 2 Note as well as assigned a rating of A (sf) to the Series 3 Note and Series 4 Note (collectively, the Notes) issued by Crecera Americas LLC. The trade finance receivables underlying the Series 1, 2 and 3 Notes are insured for default by the National Union Fire Insurance Company of Pittsburgh, Pennsylvania, a subsidiary of AIG Property Casualty U.S., Inc. The trade finance receivables underlying the Series 4 Notes are insured for default by ACE American Insurance Company, a subsidiary of Chubb. The ratings are capped at the insurer’s rating.
The Notes were issued pursuant to the Receivable Sale Agreement originally dated as of August 31, 2017, and further amended by the First Amendment dated May 31, 2018, among Crecera Americas LLC as Issuer; Petra Management Limited as Program Manager; and the Bank of New York Mellon Corporation (rated AA (low) with a Positive trend by DBRS) as Trustee and executed on November 8, 2018.
DBRS’s ratings address Crecera Americas LLC’s ability to make timely payments of interest and ultimate payment of principal on or before the Maturity Date (as defined in the transaction documents).
The ratings reflect the following:
-- The Receivables Sales Agreement executed on November 8, 2018, and the related transaction documents;
-- The integrity of the transaction structure;
-- DBRS’s assessment and review of the insurance policies;
-- Adequate credit enhancement to cover principal and interest in full and on time along with senior expenses; and
-- DBRS’s assessment of the origination and servicing of Crecera Trade Finance Ltd.
The sources of information used for this rating include parties involved in the rating including, but not limited to, Petra Management Limited and Crecera Trade Finance Ltd. DBRS considers the information available to it for the purposes of providing this rating to be satisfactory.
The principal methodology is Rating U.S. Structured Finance Transactions, Appendix V – Obligations Backed by Insurance Policy, 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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