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Rating Action: Moody's upgrades LEAF Receivables Funding 12, LLC, Series 2017-1

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Approximately $212.3 million of asset-backed securities affected

New York, December 06, 2017 -- Moody's Investors Service has upgraded four securities and affirmed four securities from the LEAF Receivables Funding 12, LLC, Series 2017-1 transaction. The transaction is a securitization of small-ticket equipment leases serviced by LEAF Commercial Capital, Inc.

Complete rating actions are as follow:

Issuer: LEAF Receivables Funding 12, LLC, Series 2017-1

Class A-2 Notes, Affirmed Aaa (sf); previously on May 25, 2017 Definitive Rating Assigned Aaa (sf)

Class A-3 Notes, Affirmed Aaa (sf); previously on May 25, 2017 Definitive Rating Assigned Aaa (sf)

Class A-4 Notes, Affirmed Aaa (sf); previously on May 25, 2017 Definitive Rating Assigned Aaa (sf)

Class B Notes, Upgraded to Aaa (sf); previously on May 25, 2017 Definitive Rating Assigned Aa2 (sf)

Class C Notes, Upgraded to Aa1 (sf); previously on May 25, 2017 Definitive Rating Assigned A1 (sf)

Class D Notes, Upgraded to A1 (sf); previously on May 25, 2017 Definitive Rating Assigned A3 (sf)

Class E-1 Notes, Upgraded to Baa2 (sf); previously on May 25, 2017 Definitive Rating Assigned Baa3 (sf)

Class E-2 Notes, Affirmed Ba3 (sf); previously on May 25, 2017 Definitive Rating Assigned Ba3 (sf)

RATINGS RATIONALE

The actions were prompted mainly by a build-up of credit enhancement due to the sequential payment structure of the transaction and non-declining reserve account. The lifetime cumulative net loss (CNL) expectations for the transaction was unchanged at 3.0%.

Below are key performance metrics (as of the November 2017 distribution date) and credit assumptions for the affected transaction. Credit assumptions include Moody's expected lifetime CNL expectation, which is expressed as a percentage of the original pool balance; and Moody's remaining net loss expectation and Moody's Aaa level, both expressed as a percentage of the current pool balance. The Aaa level is the level of credit enhancement that would be consistent with a Aaa (sf) rating for the given asset pool. Performance metrics include pool factor (the ratio of the current collateral balance to the original collateral balance at closing); total hard credit enhancement (expressed as a percentage of the outstanding collateral pool balance) which typically consists of subordination, overcollateralization, reserve fund as applicable.

Issuer - LEAF Receivables Funding 12, LLC, Series 2017-1

Lifetime CNL expectation -- 3.0%; Prior expectation (May 2017) -- 3.0%

Remaining net loss expectation -- 3.5%

Aaa level -- 23.0%

Pool factor -- 81.3%

Total Hard credit enhancement -- Class A Notes 34.0%, Class B Notes 27.5%, Class C Notes 21.0%, Class D Notes 16.6%, Class E-1 Notes 10.2%, Class E-2 Notes 4.9%

The principal methodology used in these ratings was "Moody's Approach to Rating ABS Backed by Equipment Leases and Loans" published in December 2015. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

Factors that would lead to an upgrade or downgrade of the ratings:

Up

Levels of credit protection that are greater than necessary to protect investors against expectations of future loss could lead to an upgrade of the rating. Moody's expectations of future loss may be better than its original expectations because of lower frequency of default by the underlying obligors. Performance of the US macro economy and the equipment markets are primary drivers of performance. Other reasons for better performance than Moody's expected include changes in servicing practices to maximize collections on the leases.

Down

Levels of credit protection that are insufficient to protect investors against expectations of future loss could lead to a downgrade of the ratings. Moody's expectations of future loss may be worse than its original expectations because of higher frequency of default by the underlying obligors. Performance of the US macro economy and the equipment markets are primary drivers of performance. Other reasons for worse performance than Moody's expected include poor servicing, error on the part of transaction parties, lack of transactional governance and fraud.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

The analysis includes an assessment of collateral characteristics and performance to determine the expected collateral loss or a range of expected collateral losses or cash flows to the rated instruments. As a second step, Moody's estimates expected collateral losses or cash flows using a quantitative tool that takes into account credit enhancement, loss allocation and other structural features, to derive the expected loss for each rated instrument.

Moody's quantitative analysis entails an evaluation of scenarios that stress factors contributing to sensitivity of ratings and take into account the likelihood of severe collateral losses or impaired cash flows. Moody's weights the impact on the rated instruments based on its assumptions of the likelihood of the events in such scenarios occurring.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Jayesh Joseph
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Benjamin Shih
Vice President - Senior Analyst
Structured Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653



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