The confirmation is part of DBRS Morningstar's continued effort to provide timely credit rating opinions and increased transparency to market participants.
The Trust also issued Auto Loan Receivables Backed Notes, Class A (the Class A Notes; collectively with the Subordinated Notes, the Notes), which are not rated. The Notes are supported by a portfolio of prime retail auto loan contracts originated by
Repayment of the Notes will be made from collections from the Portfolio of Assets, which generally include scheduled monthly loan payments, prepayments, and proceeds from vehicle sales in the case of defaults. Principal repayment on the Notes will be made pro rata until the occurrence of a Sequential Principal Payment Trigger Event, after which the Notes will be paid sequentially in the order of the Class A Notes, Class
DBRS Morningstar initially published its outlook on the Coronavirus Disease (COVID-19) pandemic's impact on key economic indicators for the 2020-22 time frame in
Credit protection is provided by a nonamortizing cash reserve account funded at closing representing approximately 0.42% of the outstanding Note balance as of
Excess spread net of cost of funds and replacement servicer fees is available to offset collection shortfalls on a monthly basis. As of
To date, cumulative losses amount to 6 basis points and remain well below DBRS Morningstar's expectations set at the time of the initial rating.
DBRS Morningstar monitors the performance of each transaction to identify any deviation from its expectations at issuance and to ensure that the ratings remain appropriate. The review is predicated upon the timely receipt of performance information from the related providers. The performance and characteristics of each publicly rated auto loan portfolio and the Notes are available and updated each month in the Monthly Canadian
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodology is Master Canadian Structured Finance Surveillance Methodology (
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.
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@dbrsmorningstar.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.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.
Tel. +1 416 593-5577
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
27-Nov-20 Auto Loan Receivables Backed Notes, Class B Confirmed AA (low) (sf) -- CA
27-Nov-20 Auto Loan Receivables Backed Notes, ClassC Confirmed A (low) (sf) -- CA
27-Nov-20 Auto Loan Receivables Backed Notes, Class D Confirmed BB (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.
(C) 2020 Electronic News Publishing, source