DBRS Confirms All CCARAT Retail Loan Securitizations and All ABCP Lease Transactions Involving GMAC Canada

DBRS has today confirmed the current ratings for all outstanding notes issued by Canadian Capital Auto Receivables Asset Trust, Canadian Capital Auto Receivables Asset Trust II and Canadian Capital Auto Receivables Asset Trust II, Series 2007-1, which are supported by discrete pools of retail loans originated by GMAC Canada Limited (GMAC Canada). Additionally, DBRS notes that the ratings on all outstanding asset-backed commercial paper (ABCP) funded notes backed by GMAC Canada consumer auto lease receivables are unchanged.

Despite the Chapter 11 bankruptcy protection filing by General Motors Corporation (GM), certain positive factors exist to support the current ratings assigned to the various notes. DBRS also notes that at this time General Motors of Canada Limited, GMAC LLC and GMAC Canada are not included in the GM filing announced June 1, 2009. These positive factors include the following:

(1) Performance on the transactions evidences 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 have, in all cases, increased since transaction inception.

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

(4) Pools of assets include light-duty trucks, minivans, mid-sized passenger vehicles and fuel-efficient or economy cars, facilitating a diversified portfolio with respect to residual value and collateral performance. To date, residual value performances have been within stressed assumptions set at the outset of the lease transactions, resulting in higher enhancement levels since inception.

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

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

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

This is a Structured Finance rating.