DBRS Finalizes Ratings to Ford Floorplan Auto Securitization Trust Series 2006-1, Series 2006-2 and Series 2006-3 Notes

Dominion Bond Rating Service (DBRS) has today finalized the following ratings of Ford Floorplan Auto Securitization Trust (the Trust):

-- AAA to the Auto Floorplan Receivables-Backed Notes, Series 2006-1, Class A
-- A to the Auto Floorplan Receivables-Backed Notes, Series 2006-1, Class B
-- AAA to the Auto Floorplan Receivables-Backed Notes, Series 2006-2, Class A
-- A to the Auto Floorplan Receivables-Backed Notes, Series 2006-2, Class B
-- AAA to the Auto Floorplan Receivables-Backed Notes, Series 2006-3, Class A
-- A to the Auto Floorplan Receivables-Backed Notes, Series 2006-3, Class B

On closing, the Trust acquired an interest in a portfolio of secured floorplan receivables from Ford Credit Canada Limited (FCCL) and Primus Automotive Financial Services Canada Company (PRIMUS). The Trust will continue to acquire additional floorplan receivables that meet certain established criteria following closing. The Class A Notes and the Class B Notes are expected to provide for structured bullet payments, with the potential VFN Notes and seller’s interest increasing or decreasing as necessary to provide the balance of funding.

The ratings incorporate five considerations. Firstly, the historic low net loss levels and strong monthly payment rates exhibited by the portfolio are considered. Secondly, DBRS considers the levels of credit enhancement available to support the Notes – 14.0% for the Class A Notes, provided by 3.5% subordination from the Class B Notes, supported by 9.0% overcollateralization, and a cash Reserve Fund initially equal to 1.5% of the Notes. Thirdly, a required pool balance of 105% to cover dilution risk is taken into account. Next, strong historic performance by FCCL and PRIMUS in servicing the dealer network, particularly in dealing with problem accounts, is considered. And finally, DBRS considers whether the dealers are both seasoned and geographically diverse, representing a cross-section of the country, with structural concentration limits designed to create a strong and diverse pool.