DBRS Confirms Ratings of CFI Trust

DBRS has today confirmed the AAA and AA ratings of the Series 1999-1, Class B, Bridge Notes; the Series 1999-1, Class C, Term Notes; the Series 2005-1, Class A-1 Notes; and the Series 2008-1, Class A-1 Notes (collectively, the Notes) issued by CFI Trust (the Trust), removing them from Under Review with Developing Implications.

The ratings were placed Under Review with Developing Implications on September 2, 2008, when DBRS informed Corpfinance International Limited (CFI Ltd.), the sponsor of the Trust, of the requirement to meet the criteria for a conduit sponsor (please see the link below to DBRS’s “Commentary on Criteria to Establish a Canadian Asset-Backed Commercial Paper Conduit”, published January 26, 2006, for further details).

At this time, DBRS confirms that CFI Ltd. has met the conduit criteria required to continue to sponsor CFI Trust through the period of its ongoing Monthly Pay Event. DBRS is satisfied that CFI Ltd. has met the necessary requirements in terms of capital structure and servicing capabilities outlined in the criteria for these series of notes issued by this Trust. In particular, DBRS observes that appropriate remedial actions have been taken to protect the Trust for the losses incurred as a result of previous fraudulent activities by an originator of assets and in steps taken to minimize the risk of future occurrences of this nature. The ratings assigned by DBRS reflect the creditworthiness of the underlying assets and address the likelihood that noteholders will receive timely payment of principal and interest on or prior to the legal final maturity date of the Notes.

DBRS notes that the underlying assets of retail and small fleet leases and loans related to automobiles, minivans, SUVs and light duty trucks continue to perform within expectations. The available enhancement to support the issued and outstanding notes meets DBRS’s criteria for the ratings assigned.

However, the current harsh economic climate continues to expose the assets, the originators and the administrator to further performance risk. DBRS will monitor the situation closely and will respond accordingly, if required.

Notes:
The applicable methodology is Rating Canadian Auto Lease Transactions, which can be found on our website under Methodologies.

This is a Structured Finance rating.