DBRS Assigns Provisional Rating of R-1 (high) (sf) to Lakeshore Trust Series 1 Asset-Backed Commercial Paper Notes

DBRS Limited (DBRS) assigned a provisional rating of R-1 (high) (sf) to the Series 1 Asset-Backed Commercial Paper Notes (the Notes) to be issued by Lakeshore Trust (the Trust). The Trust is a multi-seller, asset-backed commercial paper conduit administered by its financial services agent, Royal Bank of Canada.

The rating on the Notes has been assigned on the basis of a review by DBRS of the Trust’s documentation, which is consistent with DBRS’s applicable methodologies, including its liquidity agreement that meets the Global Liquidity Standard indicated in DBRS’s methodology “Rating Canadian ABCP and Related Enhancement Features.”

The rating is also based on the following considerations:

(1) DBRS’s prior review of all transactions entered into by the Trust that back the Notes to ensure credit enhancement levels (including program-wide credit enhancement) are consistent with similarly rated programs in Canada and that each transaction backing the Notes will be structured to achieve a AAA standard.

(2) The liquidity facilities meet DBRS’s Global Liquidity Standard and are available to assist the Trust in repaying the Notes if the Trust is not able to issue new Notes to do so.

(3) Minimum credit ratings of A (high) or R-1 (middle) or their equivalent for liquidity providers, credit enhancers and hedge counterparties are required, unless otherwise approved by DBRS.

(4) The assets backing the notes, through securitization agreements, will be structured to be bankruptcy remote from the sellers and the bankruptcy remoteness is supported by legal opinions.

(5) RBC has significant experience in structuring, administering and managing multi-asset, multi-seller securitization programs.

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

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.

The principal methodologies are Rating Canadian ABCP and Related Enhancement Features and Legal Criteria for Canadian Structured Finance, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.