Press Release - NOVEMBER 29, 2018

A.M. Best Affirms Issue Credit Ratings of 321 Henderson Receivables V LLC


CONTACTS:
 Alma W. Nieves
Financial Analyst,
Insurance-Linked Securities
+1 908 439 2200, ext. 5713
alma.nieves@ambest.com

Yuhmei Chen
Senior Financial Analyst,
Insurance-Linked Securities
+1 908 439 2200, ext. 5236
yuhmei.chen@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - NOVEMBER 29, 2018
A.M. Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of “aaa” on $74,646,000 Class A-1 8.00% Fixed Rate Asset Backed Notes, Series 2008-3 and $9,389,000 Class A-2 8.00% Fixed Rate Asset Backed Notes, Series 2008-3, as well as the Long-Term IR of “bbb-” on the $4,695,000 Class B 10.00% Fixed Rate Asset Backed Notes, Series 2008-3 of securities issued by 321 Henderson Receivables V LLC (the issuer), a special purpose Nevada limited liability company. The outlook of these Credit Ratings (ratings) is stable.

The issuer was formed for the purpose of acquiring receivables from an affiliate; conducting activities required for the maintenance and servicing of the receivables; creating trust and/or other entities for the purpose of securitizing the receivables; issuing securities related to the securitization; and organizing other activities incidental to the performance of the aforementioned items.

Proceeds from the issuance of the notes, along with contributed equity capital, were used to purchase a pool of structured settlement and annuity receivables (receivables) from the affiliate and to fund the initial reserve requirement. The initial pool of receivables consisted of 1,844 contracts totaling $189,169,244.16 in payment obligations from 107 insurance companies. Nearly all of the receivables were pursuant to a court order. A structured settlement describes an arrangement between a claimant and a defendant, which results in compensation to the claimant who has settled a claim, primarily arising from a personal injury lawsuit with the

defendant. The compensation arrangement provides for a payment to be received by the claimant over time, usually in the form of an annuity payment issued by an insurance company. A settlement receivable represents the purchase of all or a portion of a claimant’s right to receive scheduled settlement payments, thereby providing liquidity to the claimant whose structured settlement no longer meets his/her particular life circumstance.

The rating actions reflect qualitative and quantitative considerations including default probabilities that are derived from stochastic modeling that incorporates the default probability of the annuity providers maintaining the payment obligations and the assumed recovery rate on the cash flows in the event of an insurance carrier default. The modeling of the transaction incorporates updates on: (1) Long-Term Issuer Credit Ratings (Long-Term ICRs) of the insurance carriers, (2) financial data required for modeling purposes and (3) remaining collateral information including the reduced payment obligations of Guaranty Association Benefits Company, a not-for-profit captive insurance company formed for making payments to the payees and certificate holders of the liquidated Executive Life Insurance Company of New York.

The ratings could be upgraded or downgraded or the outlook revised if material changes occur in the Long-Term ICRs of the remaining insurance carriers, a reduction in the remaining scheduled payments occurs, or there is an increase in the level of the write-off activity or a breach in ongoing surveillance or compliance benchmarks.

These are structured finance ratings.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.


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AMB# Company Name
054027 321 Henderson Receivables V LLC