DLL's first agricultural equipment securitisation.

DLL's first agricultural equipment securitisation.

This is the first transaction for DLL Finance, LLC (DLL Finance; unrated), a wholly owned subsidiary of De Lage Landen Financial Services, Inc. which is an indirect wholly owned subsidiary of DLL International B.V. which is, itself, a wholly owned subsidiary of Rabobank (Aa2/P-1).

The notes are backed by a pool of leases and loans secured primarily by agricultural equipment (97% of aggregate discounted receivables balance), as well as some construction equipment (3%) originated by DLL Finance, which is also the servicer for the transaction.

The complete rating actions are as follows:

Issuer: DLL Securitization Trust 2017-A

Class A-1 Notes, Definitive Rating Assigned P-1 (sf)

Class A-2 Notes, Definitive Rating Assigned Aaa (sf)

Class A-3 Notes, Definitive Rating Assigned Aaa (sf)

Class A-4 Notes, Definitive Rating Assigned Aaa (sf)

RATINGS RATIONALE

The ratings are based on the credit quality of the underlying equipment contracts and the pool's expected performance, the strength of the capital structure, and the experience and expertise of DLL Finance as the servicer.

Moody's median cumulative net loss expectation for the DLL 2017-A collateral pool is 0.85% (seasoning adjusted) and the Aaa level is 11.00% (inclusive of 4.5% residual value loss, as well as 6.5% credit loss). The Aaa level is the level of credit enhancement consistent with a Aaa (sf) rating. Moody's based its cumulative net loss expectation and Aaa level for the DLL 2017-A transaction on an analysis of the credit quality of the underlying collateral; the historical performance of similar collateral, i.e., managed portfolio performance; the ability of DLL to perform the servicing functions; the inclusion of Wilmington Trust, National Association as cold back-up servicer; and current expectations for the macroeconomic environment during the life of the transaction.

At closing the Class A notes benefit from 11.30% of hard credit enhancement (as a % of the initial pool balance). Initial hard credit enhancement for the notes consists of a combination of overcollateralization of 10.30% and a 1.00% fully funded, non-declining reserve account. Overcollateralization will build up to a target of 11.50% of the initial pool balance, and will remain at that level until the Class A Notes are paid off. The notes will also benefit from excess spread.