DBRS Says Current Ratings Unchanged for All Retail Lease and Loan Securitization Transactions Involving Chrysler Canada Inc.

DBRS has today said that the current ratings remain unchanged for all outstanding retail lease and retail loan auto-backed securitization transactions supported by discrete pools of retail lease and retail loans originated by Chrysler Canada Inc. and its affiliates (Chrysler Canada).

Despite the bankruptcy filing by Chrysler LLC, certain positive factors exist to support the current ratings assigned to the various notes. DBRS also notes that at this time, neither Chrysler Canada nor any of its Canadian affiliates are included in the Chrysler LLC filing announced April 30, 2009. These factors include the following:

(1) Performance on the lease and loan transactions evidencing a geographically diverse consumer base that continues to meet monthly payment obligations within the base loss expectations established at the outset of the transactions.

(2) Enhancement levels that have in all cases increased since transaction inception.

(3) Non-amortizing features of the enhancement that will allow the total level of enhancement available for losses to continue to grow as the note balances are repaid.

(4) A diverse portfolio of vehicles that includes light-duty trucks, minivans, mid-sized passenger vehicles and fuel-efficient or economy cars.

(5) Bankruptcy-remote transaction structures supported by opinions from nationally recognized legal counsel.

DBRS will continue to monitor the status of the bankruptcy and its implications on the servicer, the servicers’ operations and performance of the obligors in the transactions it rates and will take action, if warranted

Notes:
The applicable methodologies are Rating Canadian Auto Lease Transactions and Rating Canadian Auto Loan Securitization, which can be found on our website under Methodologies.

This is a Structured Finance rating.