DBRS Confirms Ford Floorplan Auto Securitization Trust, Series 2010-F1, Series 2010-F2 and Series 2010-F3

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 Ford Floorplan Auto Securitization Trust (the Trust):

– AAA (sf) Fixed Rate Asset-Backed Notes, Series 2010-F1, Class A
– AA (sf) Fixed Rate Asset-Backed Notes, Series 2010-F1, Class B
– A (sf) Fixed Rate Asset-Backed Notes, Series 2010-F1, Class C
– BBB (sf) Fixed Rate Asset-Backed Notes, Series 2010-F1, Class D
– AAA (sf) Floating Rate Asset-Backed Notes, Series 2010-F2, Class A
– AA (sf) Floating Rate Asset-Backed Notes, Series 2010-F2, Class B
– A (sf) Floating Rate Asset-Backed Notes, Series 2010-F2, Class C
– BBB (sf) Floating Rate Asset-Backed Notes, Series 2010-F2, Class D
– AAA (sf) Floating Rate Variable Funding Asset-Backed Notes, Series 2010-F3, Class A-1
– AAA (sf) Floating Rate Variable Funding Asset-Backed Notes, Series 2010-F3, Class A-2

The ratings are based on the following factors:

(1) The Series 2010-F1 and Series 2010-F2 notes are protected by high levels of credit enhancement provided by overcollateralization equal to 15.6% of their respective current principal balance and a non-amortizing reserve account that was seeded at inception with an amount equivalent to 1% of their respective current principal balance. Credit support to the Series 2010-F1 and Series 2010-F2 Class A Notes is also provided by preferential access to collections arising from the subordination of 15.6% from the Series 2010-F1 and Series 2010-F2 Class B Notes, Class C Notes and Class D Notes. The Series 2010-F1 and Series 2010-F2 Class B Notes receive preferential access to collections from the subordination of the Series 2010-F1 and Series 2010-F2 Class C Notes and Class D Notes equal to 13.3% of the Series 2010-F1 and Series 2010-F2 notes. The Series 2010-F1 and Series 2010-F2 Class C Notes receive preferential access to collections from the subordination of the Series 2010-F1 and Series 2010-F2 Class D Notes equal to 4.6% of the Series 2010-F1 and Series 2010-F2 notes.

(3) In addition to the enhancement amounts, the aggregate Notes are supported by excess spread in the range of 0.9% to 3.1% and by eligible receivables equal to 105% of the Notes to cover any negative impact on the portfolio that arises from dilutions.

(4) Cumulative losses experienced by the Trust’s portfolio since 2010 remained at zero as Ford Credit Canada Limited (FCCL) has repurchased all the receivables from the Trust that have been impaired, even though it is not required to do so.

(5) The reserve account builds up to 5.0% of the initial principal balance of the Notes if an amortization event occurs.

(6) The monthly principal payment rates from dealers in the Trust continue to be consistently high, ranging from 37.0% to 67.5% for the period May 2010 to February 2012.

(7) FCCL is a seasoned and capable seller and initial servicer and provides financing to Ford dealers throughout Canada and to a small number of non-Ford branded dealers. FCCL has demonstrated a long track record of managing a wholesale financing program with its dealers and has been in business in Canada since 1962.

(8) The performance of dealers is expected to correlate with the performance of Ford Motor Company (Ford). A strong performance of the manufacturer implies a stable supply of new vehicles and parts as well as warranty and brand support. DBRS upgraded the rating of Ford on September 30, 2011 to reflect the continuously improving performance.

(9) Structural mitigants, including a performance guarantee from its U.S. parent, Ford Motor Credit Company (Ford Credit); payment rate triggers; dealer and used-vehicle concentration limits; and additional transaction triggers tied to the health of FCCL, Ford Credit, Ford Motor Company of Canada and its U.S. parent, Ford Motor Company.

(10) First-perfected security interest in new and used vehicles and, in many cases, additional security provided by each dealer in the form of personal guarantees and/or the taking of security in dealers’ holdings, represented primarily by real estate.

(11) Servicer risk addressed through the contractual inclusion of a ready backup servicer in Wells Fargo Bank, National Association.

For detailed information on the transaction structure, please refer to the rating reports of the Trust at www.dbrs.com.

The performance and characteristics of the pool and the Notes are available and updated each month in the Monthly Canadian ABS Report (see Related Research below).

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.