DBRS Confirms AAA Ratings of CRAFT Series 2007-D1, Series 2007-D2 and Series 2007-D3 Notes

DBRS has today confirmed the AAA ratings of Canadian Revolving Auto Floorplan Trust (CRAFT) Series 2007-D1, Series 2007-D2 and Series 2007-D3 notes that were placed Under Review with Developing Implications on May 1, 2009. This ratings action follows the continued strong performance of the transaction and the recent announcement by Chrysler LLC (Chrysler) that it has emerged from bankruptcy protection in the United States.

The bankruptcy filing by Chrysler constituted an early amortization event (but did not constitute an event of default) under the CRAFT legal documents that continues even though Chrysler has since emerged from bankruptcy protection. As a result of the occurrence of an early amortization event, all principal collections received by CRAFT are being allocated to the notes on a pro rata basis.

In confirming the AAA rating of the outstanding notes DBRS cites:
-- The repayment of 93% of principal on the Series D Notes as of the end of June, 2009.

-- The emergence of Chrysler from bankruptcy protection under an approved acquisition by Fiat S.p.A., which includes the planned return to manufacturing of new vehicles in North America.

-- A resolution to the uncertainty of financing availability to the Chrysler dealer network provided by GMAC.

-- An increase in the cash reserve to 25.9% from 1.75% of the notes outstanding.

-- The continued high average payment rate of 41.3% for the three-month period ending June 30, 2009.

-- Based on current payment rates and the remaining size of the pool of assets supporting the remaining unpaid note balance including 20.0% reported overcollateralization, DBRS anticipates that the outstanding notes will be fully repaid well in advance of their originally expected repayment dates.

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

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

This is a Structured Finance rating.