DBRS Morningstar Confirms Banner Trust’s Series A Notes
ABCPDBRS Limited (DBRS Morningstar) confirmed its rating of R-1 (high) (sf) on the Series A Notes (the Notes) issued by Banner Trust (the Trust) as part of its annual review of publicly rated asset-backed commercial paper conduits. The confirmation is part of DBRS Morningstar’s continued effort to provide timely credit rating opinions and increased transparency to market participants.
The Trust is a multi-seller, multi-asset securitization program administered by TD Securities Inc. (TDSI). The Trust engages in traditional asset transactions. Assets and/or interests acquired by the Trust from sellers (the Assets) are subject to eligibility criteria and/or confirmation from DBRS Morningstar. As of August 31, 2019, the Assets backing the Series A Notes consist of home equity lines of credit (47.9%), conventional mortgages (23.7%), insured mortgages (23.1%) and auto loans (5.4%).
The rating confirmation is based on the following considerations:
(1) Credit enhancement levels are consistent with similarly rated programs in Canada. From inception, every transaction funded by the Notes has been independently structured to meet a AAA standard.
(2) The liquidity facilities meet DBRS Morningstar’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. The commitment amount equals at least the face value (including interest) of all outstanding Notes.
(3) Minimum credit ratings of “A” or R-1 (low) or their equivalent for liquidity providers, credit enhancers and hedge counterparties are required, unless otherwise approved by DBRS Morningstar.
(4) The Assets, through Securitization Agreements, are structured to be bankruptcy remote from the sellers and the bankruptcy remoteness is supported by legal opinions.
(5) All transactions are reviewed by DBRS Morningstar prior to initial funding by the Trust.
(6) The performance of the underlying collateral is strong.
(7) TDSI has significant experience as a Financial Services Agent in structuring, administering and managing multi-asset, multi-seller securitization programs. TDSI administers five multi-seller conduits with aggregate notes outstanding amounts of $9,660,114,800 as of August 31, 2019.
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodology is Master Canadian Structured Finance Surveillance Methodology, 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 Morningstar 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.
The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrs.com.
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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