DBRS Confirms Rating on MBARC Credit Canada Inc. 2017-A Notes

DBRS Limited (DBRS) confirmed the rating on the following notes (the Notes) issued by MBARC Credit Canada Inc. as part of DBRS’s continued effort to provide market participants with updates on an annual basis:

-- 2017-A Class A-3 Asset Backed Notes at AAA (sf)

The confirmation of the rating is based on performance of the transaction as of July 2019:

(1) Total credit enhancement levels available remain high and continue to provide sufficient protection to the Notes at its current rating. The Notes are also protected by excess spread, which is available to cover monthly credit losses and any arising replacement servicer costs.

(2) The collateral for the Notes has been performing well, with cumulative credit gains of 22 basis points (bps). In addition, the transaction benefits from cumulative residual value gains on returned vehicles, equivalent to 9.1% of the initial securitization value.

(3) Daimler AG (rated “A” with a Stable trend by DBRS), the parent company of Mercedes-Benz Financial Services Corporation, remains above investment grade as of November 2018.

DBRS monitors the performance of each transaction to identify any deviation from DBRS’s expectation at issuance and to ensure the rating remains appropriate. The review is predicated upon the timely receipt of performance information from the related providers.

Notes:
The principal methodology is Master Canadian Structured Finance Surveillance Methodology (June 2019), which can be found on dbrs.com under Methodologies & Criteria.

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 under Related Documents or by contacting us at info@dbrs.com.

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

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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