Class B Receivable-Backed Notes, Series 2018-2 (the Series 2018-2, Class
DBRS Morningstar also confirmed the ratings of the following notes (collectively with the Series 2018-2, Class
Class A Receivable-Backed Notes, Series 2016-1 at
Class B Receivable-Backed Notes, Series 2016-1 at AA (sf)
Class A-2 Receivable-Backed Notes, Series 2017-1 (the Series 2017-1, Class A-2 Note) at
Class B Receivable-Backed Notes, Series 2017-1 (the Series 2017-1, Class
Class A Receivable-Backed Notes, Series 2017-2 at
Class B Receivable-Backed Notes, Series 2017-2 at AA (sf)
Class A-2 Receivable-Backed Notes, Series 2018-1 (the Series 2018-1, Class A-2 Note) at
Class A Receivable-Backed Notes, Series 2018-2 at
Class A-1 Receivable-Backed Notes, Series 2019-1 (the Series 2019-1, Class A-1 Note) at
Class A-2 Receivable-Backed Notes, Series 2019-1 (collectively with the Series 2019-1, Class A-1 Note, the Series 2019-1, Class A Notes) at
The ratings are based on the following factors as of
(1) High levels of credit enhancement are available to protect all of the Notes. Credit protection to the Series 2017-1 Notes, Series 2018-1 Notes, and Series 2019-1 Notes are provided by a spread account and subordination.
(a) The spread account for the Series 2017-1 Notes has increased to 7.9% of the outstanding pool balance as of
(b) The spread account for the Series 2018-1 Notes has grown to 5.5% of the outstanding balance as of
Since issuance, the spread account for the Series 2019-1 Notes has grown to 3.0% of the outstanding balance as of
(2) The Notes are also protected by excess spread, which is available to cover monthly credit losses and any arising replacement servicer costs.
(3) Subject to the performance of the assets, the spread account is permitted to decrease up to four times on a predetermined schedule as the transaction amortizes. The step-downs are subject to both delinquency and cumulative loss tests.
(4) The collateral for all series of notes has been performing well, with the cumulative loss rate for all series performing within DBRS Morningstar's expectations.
(5) Strong experience of
DBRS Morningstar monitors the performance of the transaction to identify any deviation from DBRS Morningstar's expectations at issuance and to ensure the ratings remain appropriate. The review is predicated upon the timely receipt of performance information from the related providers. The performance and characteristics of the equipment finance portfolio and the Notes are available and updated each month in the Monthly Canadian
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodology is the Master Canadian Structured Finance Surveillance Methodology (
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.
For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.
Ratings
Date Issued Debt Rated Action Rating Trend Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-Participating
18-Feb-20 Class A Receivable-Backed Notes, Series 2016-1 ConfirmedAAA (sf) -- CA
18-Feb-20 Class A Receivable-Backed Notes, Series 2017-2 ConfirmedAAA (sf) -- CA
18-Feb-20 Class A Receivable-Backed Notes, Series 2018-2 ConfirmedAAA (sf) -- CA
18-Feb-20 Class A-1 Receivable-Backed Notes, Series 2019-1 ConfirmedAAA (sf) -- CA
18-Feb-20 Class A-2 Receivable-Backed Notes, Series 2017-1 ConfirmedAAA (sf) -- CA
18-Feb-20 Class A-2 Receivable-Backed Notes, Series 2018-1 ConfirmedAAA (sf) -- CA
18-Feb-20 Class A-2 Receivable-Backed Notes, Series 2019-1 ConfirmedAAA (sf) -- CA
18-Feb-20 Class B Receivable-Backed Notes, Series 2016-1 Confirmed AA (sf) -- CA
18-Feb-20 Class B Receivable-Backed Notes, Series 2017-1 Confirmed AA (sf) -- CA
18-Feb-20 Class B Receivable-Backed Notes, Series 2017-2 Confirmed AA (sf) -- CA
18-Feb-20 Class B Receivable-Backed Notes, Series 2018-2 Upgraded AA (sf) -- CA
ALL DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.
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