DBRS Reviews the Amendment for A-BEST 14

DBRS Ratings Limited (DBRS) has today reviewed the amendment made on 29 June 2016 (the Amendment) and concludes that the Amendment will not result in a reduction or withdrawal of the ratings of the notes (the Notes) issued by Asset-Backed European Securitisation Transaction Fourteen (the Issuer).

The Amendment envisaged a reduction of the discount rate for the determination of the portfolio amount from 7% to the weighted-average portfolio interest rate.

As a result of the change in the discount rate, the initial portfolio value increased by EUR 47 million to EUR 997 million as at 23 April 2016 (the initial portfolio transfer effective date) while the Notes remained unchanged at EUR 963.3 million (including the Class M1 and M2 Notes). This results in an initial overcollateralisation of EUR 33.7 million offset by 2.66% initial excess spread compression, which is the difference of the 7% and 4.34% weighted-average nominal interest rate. DBRS recalibrated its cash flow analysis and determined that the Amendment has no rating impact on the Notes. DBRS also updates the rating report to incorporate related changes.

The transaction initially closed on 16 May 2016 and has a revolving period of 25 months during which the Issuer may acquire additional receivables, subject to certain conditions such as a minimum weighted-average portfolio yield of 3.5%.

DBRS will continue to monitor the performance and provide timely comments to market participants.