DBRS Confirms CARDS II Trust

DBRS has today confirmed the ratings of the Notes issued by CARDS II Trust (the Trust). The confirmation is based on the following factors: generally stable gross yield, excess spread and high payment rate and the increased credit support available to the Notes through a new series of subordinated notes (Enhancement Notes) held by Canadian Imperial Bank of Commerce.

Consequently, the credit support for the Notes is as follows:

-- Series 2005-1, Series 2005-2, Series 2005-3, Series 2006-1, Series 2006-2: 10.25%, 6.25% and 2.25% for Class A, Class B and Class C Notes, respectively (increased by 2.25% from 8%, 6% and 0%), in addition to excess spread;
-- Series 2005-4: 7.25%, 4.75% and 2.25% for Class A, Class B and Class C Notes, respectively (increased by 2.25% from 5%, 2.5% and 0%), in addition to excess spread.

As Series 2004-1 and Series 2004-3 are currently in accumulation period and expected to be fully repaid in October 2009, additional credit support through Enhancement Notes has not been provided for these two series.

While the loss rates of the portfolio remain elevated, DBRS considers that the increased credit support appropriately reflects DBRS’s revised expectations of future portfolio performance and is commensurate with the current AAA, ‘A’, and BBB ratings assigned to the Notes. Therefore, the ratings have been confirmed.

Notes:
The applicable methodology is DBRS Criteria for Canadian Credit Card Securitization, which can be found on our website under Methodologies.

This is a Structured Finance rating.

Media Contact
Caroline Creighton
Senior Vice President
Communications
Tel. +1 416 597 7317
ccreighton@dbrs.com