ARC Ratings’ Trade Receivables-Backed Securitisation Rating Methodology blends quantitative factors such as history of defaults, and dilutions and timing of payments, with qualitative factors such as the review of the originator and servicer policies. ARC Ratings will determine the appropriateness of the available dynamic credit enhancement which is generally provided through a dynamic loss reserve mechanism and a dynamic dilution reserve mechanism. All findings will be presented to a rating panel, followed by lifetime monitoring of transaction triggers.