DBRS Upgrades 2010 and 2011 Class B Notes of CARDS II Trust to BBB (sf)

DBRS has today upgraded the ratings of certain Class B Notes (the Class B Notes) issued by CARDS II Trust (the Trust) to BBB (sf) from BBB (low) (sf) as listed below:

-- Series 2010-1
-- Series 2010-2
-- Series 2010-3
-- Series 2011-1
-- Series 2011-2
-- Series 2011-3

DBRS notes that the loss rates of the Trust have moderated and are currently stabilizing at around 5% since the peak reached in mid-2009. In addition, the gross yield and monthly payment rates remained stable over the same period.

Based on various stress scenarios of simultaneous declines in yield and payment rates and increases in losses, DBRS’s analysis shows that the Class B Notes have been able to withstand stress multiples in the more conservative range of the BBB (sf) rating category for at least six months. An upgrade to the higher BBB (sf) rating is, therefore, warranted.

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

The applicable methodologies are DBRS Criteria for Canadian Credit Card Securitization and Legal Criteria for Canadian Structured Finance, which can be found on our website under Methodologies.

MEDIA CONTACT:
Caroline Creighton
Senior Vice President, Communications
Tel. +1 416 597 7317
ccreighton@dbrs.com