The periodic review date reflects the last time the transaction was formally reviewed. Periodic reviews do not involve a rating panel. The publication of information regarding periodic transaction reviews does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings, outlooks and watch status cannot be changed in a periodic review and hence are not impacted by the publication of information regarding periodic deal reviews. In cases where the last periodic review date is the date of the last rating action, please refer to the associated rating report or press release for a detailed description of the rating rationale. Periodic deal reviews are carried out by ARC in conformity with the applicable criteria and the key rating factors detailed below.

Portfolio Credit Quality reflects the underlying credit risk of the asset or pool of assets. These include, when applicable, default risk of underlying obligors, repossession of assets and loss given default, liquidity risk, and market risk. ARC uses performance reports and updated data tapes to review any changes in underlying credit metrics, including asset performance and cash remittance information taking into account other qualitative and quantitative components given the relevance of performance and historical trends.

Counter-party Risk reflects the risk of potential default of any of a variety of deal parties as applicable, including the originator, servicer, swap counter-party, account bank, or guarantor/supporting entity, as well as by a potential default of instruments in which deal cash is invested. Risks considered include, when applicable, set-off risk, commingling risks, swap counter-party exposures, operational risk and risk of default by account bank, default of guarantor/supporting entity or of temporary investments. Counter-party Risk will continually be assessed against the applicable criteria thresholds for a given transaction. Other information provided in performance reports may be used in reassessing operational risks and commingling risks when relevant.

Legal/Regulatory Considerations take into account the risk of potential legal challenges affecting deal performance in relation to issuer’s bankruptcy remoteness, legal construct of swaps and the true sale or segregation of the assets, among others. Periodic Reviews consider specifically legal and regulatory changes or challenges when such risks materialize. Regulatory, statutory and judicial developments may require jurisdiction specific analysis, in particular changes in relevant laws and tax codes and how those changes may impact a deal.

Structural Considerations take into account the risk of change in cash flows for a deal. The priority of payments of principal and interest considers structural features such as overcollateralization, subordination, reserve accounts or excess spread, applied in full or in part, as well as relevant amortization profiles and revolving and IO (interest/only) mechanisms. Where applicable, external credit enhancement, such as letter of credit, surety bond and cash collateral account, are also reviewed. For details regarding a tranche’s credit rating actions, including the rationale and key rating factors, please see the respective issuer’s profile on ARC Ratings’ website (