DBRS Places Canadian Revolving Auto Floorplan Trust Series 2007-D1, Series 2007-D2 and Series 2007-D3 Under Review – Developing

DBRS has today placed the ratings of Canadian Revolving Auto Floorplan Trust (CRAFT) Series 2007-D1, Series 2007-D2 and Series 2007-D3 notes Under Review with Developing Implications. This rating action follows the announcement by Chrysler LLC (Chrysler) that it has filed for Chapter 11 bankruptcy protection in the United States.

The bankruptcy filing by Chrysler constitutes an early amortization event (but does not constitute an event of default) under the CRAFT legal documents. As a result of the occurrence of an early amortization event, all principal collections received by CRAFT will be allocated to the notes on a pro rata basis.

While the bankruptcy filing was accompanied by announcements regarding the availability of funding through the bankruptcy proceedings, the information is not available at this time. Therefore, DBRS has not had the opportunity to review the nature of this funding and assess the impact on the Canadian dealer network and the associated performance of the dealer floorplan loans financed through the CRAFT structure. Upon completion of its review, DBRS will provide further commentary and direction on the impact on the CRAFT structure and the ratings of the Series 2007-D1, Series 2007-D2 and Series 2007-D3 notes.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Canadian Wholesale Floorplan Methodology, which can be found on our website under Methodologies.

This is a Structured Finance rating.