DBRS Confirms Ratings of Apex Trust Series A Bonds at AAA and Series A Notes at R-1 (high)

DBRS has today confirmed the rating of the Apex Trust Series A Bonds (the Series A Bonds) of Apex Trust (the Trust) at AAA and the Apex Trust Series A Class A Notes (the Class A Notes) at R-1 (high). In addition, DBRS has assigned a new rating of R-1 (high) to the Apex Trust Series A Class E Notes (the Class E Notes). The Trust is a multi-seller, multi-asset conduit that uses the proceeds from the issuance of its notes to purchase a variety of assets or structured securities from sellers that have been pre-approved by DBRS. BMO Nesbitt Burns Inc. is the Securitization Agent of the Trust.

The rating for the Class A Notes, Class E Notes and Series A Bonds are based on the following factors:

(1) Credit enhancement levels that are consistent with similarly rated programs in Canada.

(2) The availability of a dynamic cash reserve account that will increase in the relatively unlikely event that the ratings of the underlying assets migrate from AAA.

(3) Program-wide investment guidelines that impose limits on the types of transactions funded by the Trust.

(4) The availability of liquidity lines for the Class A Notes in the event of a market disruption (provided that the pre-conditions to draw the liquidity have been met, the rating of the Class A Notes has been confirmed by DBRS and the Securitization Agent has managed the maturity of the Class A Notes such that the amount of liquidity required is less than any limit provided for in the liquidity agreement).

(5) A required minimum credit rating of R-1 (middle) for liquidity lenders and AA (low) for credit enhancers, unless otherwise approved by DBRS.

(6) All transactions reviewed by DBRS prior to admittance to the program.

(7) The significant experience of the Securitization Agent and its principals in the management and structuring of securitization vehicles.