DBRS Confirms NIF-T Class A-2 Senior Medium-Term Notes, Series 2010-1 at AAA (sf)

DBRS, as part of its continued effort to provide market participants with updates on an annual basis, has today confirmed the ratings on the following notes (the Notes) issued by NIF-T (the Trust):

– AAA (sf) on the Senior Medium-Term Notes, Series 2010-1, Class A-2

The rating is based on the following factors:

(1) High levels of credit enhancement are available to protect the Notes. Credit protection to the Notes is provided by subordination by Class B notes, overcollateralization and cash reserve amounts. The initial overcollateralization was 10% of the Note balance with a 75% floor. Overcollateralization reached the floor in April 2011 and was 20.2% of the program amount in April 2012.

(2) Additional credit protection to the Notes is provided by a non-amortizing reserve account that was seeded at the onset of the transaction at 5% of the Note balance and built-up to 13.4% of the Note balance in April 2012.

(3) The Noteholders are also protected by an annual excess spread of approximately 1.4% (after replacement servicer fees), calculated as a percentage of the current program amount.

(4) Twelve-month average credit losses, based on monthly pool balance, have been 25 basis points with cumulative credit losses reaching 28 basis points of the initial pool balance, while the cumulative residual loss ratio reached 86 basis points, of the initial pool balance, in April 2012.

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 Portfolio of Loans and the Notes are available and updated each month in the Monthly Canadian ABS Report (see Related Research).

Note:
The applicable methodology is Rating Canadian Auto Lease Securitizations (January 2012), which is available on our website under Methodologies.