DBRS Confirms Ratings on Fusion Trust Notes Following Implementation of Series Wide Credit Enhancement for Series A Notes

DBRS has today confirmed the ratings on the outstanding Fusion Trust Series A, Class A notes (the Series A Notes) at R-1 (high); the Series B, Class A notes at R-1 (middle); and the Series C, Class A notes at R-1 (low) following the implementation by Fusion Trust (the Trust) of Series Wide Credit Enhancement (SWCE) to support the Series A Notes.

The SWCE is in the form of a letter of guarantee from National Bank of Canada, which is available to be drawn in the event that collections are insufficient to satisfy the obligations of the Trust relating to the Series A Notes. The initial term of the letter of guarantee is one year and will automatically renew annually for another one-year term unless National Bank of Canada provides the Trust with at least 30 days notice of non-renewal, at which time the Trust has the ability to draw down the full amount available under the letter of guarantee prior to the final expiry date, if necessary. The initial amount of the SWCE is $30,000,000 and must always be the greater of $5,000,000 or 17% of the amount of the auto lease program backing the Series A Notes.

DBRS views the implementation of the SWCE as a positive action that is beneficial to the Series A Noteholders. The Series A Notes also benefit from global style liquidity.

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

For further information, please refer to DBRS’s Legal Criteria for Canadian Structured Finance, dated October, 2008.

This is a Structured Finance rating.

This rating is based on public information.