Jefferies LoanCore LLC (JLC) has a short operating history, a concentration in commercial real estate (CRE), a capital base that fluctuates substantially, and a dependence on repurchase agreement funding facilities. The company's moderate strategic importance to Jefferies Group LLC, the credit and distribution support from its joint venture owners, and favorable market conditions for CRE originators are positive rating factors. We are assigning a 'B+' issuer credit rating on the company and a 'B' issue-level rating on its proposed senior unsecured notes. The outlook on the issuer credit rating is stable, reflecting our expectation that the company will continue to generate strong earnings over the next year without significantly loosening its underwriting standards. On May 16, 2013, Standard&Poor's
