DBRS Confirms Glacier Credit Card Trust Series 1997-1, Series 2006-1, Series 2006-2 and Series 2008-1

As part of DBRS’s continued effort to provide market participants with updates on an annual basis, DBRS has today confirmed the ratings on the following notes (collectively, the Notes) issued by Glacier Credit Card Trust (the Trust), in conjunction with the recent issuance of Series 2010-1 on November 30, 2010:

– R-1(high) (sf) for Asset-Backed Commercial Paper, Series 1997-1
– AAA (sf) for Asset-Backed Senior Notes, Series 2006-1
– “A” (sf) for Asset-Backed Subordinated Notes, Series 2006-1
– AAA (sf) for Asset-Backed Senior Notes, Series 2006-2
– “A” (sf) for Asset-Backed Subordinated Notes, Series 2006-2
– AAA (sf) for Credit Card Asset-Backed Senior Notes, Series 2008-1
– “A” (sf) for Credit Card Asset-Backed Subordinated Notes, Series 2008-1

The ratings are based on the following factors:

(1) For the Senior Notes (Series 2006-1, Series 2006-2 and Series 2008-1), the credit protection provided by subordination of 5.5% of the initial invested amount, the enhancement amount of 5.5% of the initial invested amount and excess spread generated from the receivables.

(2) For the Subordinated Notes (Series 2006-1, Series 2006-2 and Series 2008-1), the credit protection provided by the 5.5% enhancement amount and excess spread generated from the receivables.

(3) For Series 1997-1, the credit protection provided by the enhancement amount of 18.75% (as of September 30, 2010) and excess spread generated from the receivables.

(4) Over the past three years, three-month average payment rates remained stable at about 25%. Although three-month average loss rates increased from 5.7% to a peak of 8.3% during the same period, loss rates and delinquencies are now declining and stabilizing. An increase in yield during this period also helped mitigate the impact of the increase in loss rates.

(5) The custodial pool is a well-diversified and seasoned portfolio. The number of accounts in the selected pool exceeded 4.5 million as of September 30, 2010.

DBRS conducts a monthly stress testing of each rated class of the Trust and the result indicates that simultaneous declines in yield and payment rates and increases in losses would not result in a failure of the Trust in repaying the Notes on a timely basis. The severity of the tests applied is commensurate with the respective ratings of the Notes.

The Trust has incorporated DBRS’s partial commingling policy, released on June 23, 2009. DBRS believes that the partial commingling provisions mitigate potential losses to the Noteholders and also provide clarification to market participants with respect to the collection process if the seller/servicer is financially weakened.

The receivables in the Trust are originated and managed by Canadian Tire Bank. Canadian Tire Bank is an indirect, wholly owned subsidiary of Canadian Tire Corporation, which is one of the largest retailers in Canada.

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