DBRS Morningstar Confirms Rating on Mountcliff Funding LLC 4(2) Commercial Paper at R-1 (low) (sf)

DBRS, Inc. (DBRS Morningstar) confirmed its rating of R-1 (low) (sf) on the 4(2) Commercial Paper notes issued by Mountcliff Funding LLC (Mountcliff). Mountcliff, a fully supported multi-seller conduit, is sponsored by 20 Gates Management LLC (20 Gates), which also serves as the Administrator and Sponsor. Global Securitization Services, LLC serves as the Manager and Sub-Administrator. Deutsche Bank Trust Company Americas (rated A (low) with a Negative trend by DBRS Morningstar) continues to act as the Master Collateral Trustee on behalf of Mountcliff.

The rating is based on the surveillance review of Mountcliff’s asset portfolios, liquidity support, DBRS Morningstar’s assessment of how collateral performance could deteriorate because of macroeconomic stresses related to the Coronavirus Disease (COVID-19), and other considerations to assess the comprehensive risk profile.

20 Gates shared information about the extent of coronavirus-related impact on originations, underwriting, operations, and portfolio performance to date with DBRS Morningstar.

DBRS Morningstar currently expects that containment of the coronavirus will begin during Q2 2020, resulting in a gradual relaxation of stay-at-home measures and nonessential business closures and allowing a gradual economic recovery to begin in Q3 2020. For more information regarding DBRS Morningstar’s simplified set of macroeconomic scenarios for select economies related to the coronavirus, please see its commentary, “Global Macroeconomic Scenarios: Implications for Credit Ratings,” published on April 16, 2020.

The sources of information used for this rating comprise parties involved in the rating, including but not limited to Mountcliff and 20 Gates. DBRS Morningstar considers the information available to it for the purposes of providing this rating to be satisfactory.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
The principal methodology is Rating and Monitoring Asset-Backed Commercial Paper: U.S. ABCP Conduits (February 5, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

The rated entity or its related entities did 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.

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

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA
Tel. +1 212 806-3277