DBRS Morningstar Upgrades One and Confirms Three Ratings on Engs Commercial Finance Trust 2016-1

DBRS, Inc. (DBRS Morningstar) took rating actions on four classes of Notes from Engs Commercial Finance Trust 2016-1. Of the rated classes reviewed, one was upgraded and three were confirmed. For the upgraded rating, performance trends are such that credit enhancement levels are sufficient to cover DBRS Morningstar’s expected losses at their new rating level. For the confirmed ratings, performance trends are such that credit enhancement levels are sufficient to cover DBRS Morningstar’s expected losses at their current respective rating levels.

The ratings are based on DBRS Morningstar’s review of the following analytical considerations:

-- Transaction capital structure, proposed ratings, and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities in origination, underwriting, and servicing.
-- The credit quality of the collateral pool and its historical performance.

Notes:
The principal methodology is DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: <a href="https://www.dbrsmorningstar.com/research/357883/" target="_blank">DBRS Morningstar Provides Update on Rating Methodologies in Light of Measures to Contain Coronavirus Disease (COVID-19)</a>.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS Morningstar 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 attached appendix for additional information regarding sensitivity of assumptions used in the rating process.

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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