DBRS, Inc. (DBRS) assigned a rating of A (sf) to the Series 5 Note issued by Crecera Americas LLC (Crecera). DBRS also confirmed the ratings of A (sf) on the Series 1, 2, 3 and 4 Notes (together with the Series 5 Note, the Notes) issued by Crecera. The trade finance receivables underlying the Series 1 and 3 Notes are insured for default by the National Union Fire Insurance Company of Pittsburgh, PA, a subsidiary of AIG Property Casualty U.S., Inc. The trade finance receivables underlying the Series 4 and 5 Notes are insured for default by ACE American Insurance Company, a subsidiary of Chubb Limited. The ratings are limited at the insurers’ respective ratings. The trade finance receivables underlying the Series 2 Note are insured for default by both of the aforementioned insurers, depending on the currency of the issuance.
The Notes were issued pursuant to the Receivables Sales Agreement originally dated as of August 31, 2017, as further amended by the First Amendment dated as of May 31, 2018; amended for the second time on November 6, 2018; amended for the third time on May 22, 2019; and amended for the fourth time on July 31, 2019, among Crecera as Issuer, Petra Management Ltd. as Program Manager and The Bank of New York Mellon SA/NV (rated AA with a Positive trend by DBRS) as Trustee and Paying Agent.
DBRS’s ratings address Crecera’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 originally 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 capabilities of Crecera Trade Finance Ltd.
The sources of information used for these ratings include parties involved in the ratings, including, but not limited to, Petra Management Ltd. and Crecera Trade Finance Ltd. DBRS considers the information available to it for the purposes of providing these ratings to be satisfactory.
The principal methodology is Rating U.S. Structured Finance Transactions: Appendix V – Obligations Backed by Insurance Policy (Financial Guarantee), 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.
For more information on this credit or on this industry, visit www.dbrs.com or contact us at firstname.lastname@example.org.
140 Broadway, 43rd Floor
New York, NY 10005 USA