DBRS Confirms CBC Monetization Trust Notes at AAA (sf)

DBRS has today confirmed the rating of the outstanding Notes (the Notes) issued by CBC Monetization Trust (the Trust) as follows:

-- AAA (sf) for CBC Monetization Trust Notes

The confirmation is part of DBRS’s continued effort to provide timely credit rating opinions and increased transparency to market participants.

The confirmation is based on the following factors:

(1) The unconditional and irrevocable guarantee by Canadian Broadcasting Corporation (CBC) of full and timely payments due to the Trust under the Receivables.

(2) The Support Agreement whereby CBC has agreed to support the Trust for all operating costs and any tax liabilities.

(3) The status of CBC as an Agent of Her Majesty in Right of Canada (the Crown) means that CBC’s obligations under the CBC Guarantee and the Support Agreement carry the full faith and credit of the Crown.

The Trust is a special-purpose vehicle established under the laws of Ontario pursuant to a Declaration of Trust. The Trust was established on December 23, 2009, to monetize four receivables related to previous sales and leases entered into by CBC with respect to four parcels of land adjacent to the CBC Broadcasting Centre in downtown Toronto. The Notes pay a blend of principal and interest on a semi-annual basis in arrears, commencing on May 15, 2010, and continuing until and including the maturity date, May 15, 2027. The initial issuance size was $135.7 million.

The performance and characteristics of the pool and the Notes are available and updated each month in the Monthly Canadian ABS Report available at www.dbrs.com.

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

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

The applicable methodologies are North American Structured Finance Flow-Through Ratings and Canadian Structured Finance Surveillance, which are available on our website under Methodologies.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.