DBRS Morningstar Assigns Ratings to CNH Capital Canada Receivables Trust’s Series 2020-1 Notes

DBRS Limited (DBRS Morningstar) assigned the following ratings to the Receivable-Backed Notes, Series 2020-1 issued by CNH Capital Canada Receivables Trust (the Trust):

-- AAA (sf) to the Class A Receivable-Backed Notes, Series 2020-1 (the Class A Notes)
-- BBB (sf) to the Class B Receivable-Backed Notes, Series 2020-1 (the Class B Notes)

On closing, the Trust acquired a portfolio of retail installment sales and finance lease contracts secured by new and used agricultural equipment and construction equipment (the Portfolio of Assets) originated by CNH Industrial Capital Canada Ltd. in Canada. The Class A Notes and the Class B Notes are structured as sequential pass-through securities with principal and interest paid on a monthly basis from collections on the Portfolio of Assets.

The ratings include additional analysis and, where appropriate, additional stresses to expected performance as a result of the global efforts to contain the spread of the Coronavirus Disease (COVID-19). On April 16, 2020, the DBRS Morningstar Sovereigns group published its outlook on the impact on key economic indicators for the 2020–22 time frame. For details, see https://www.dbrsmorningstar.com/research/359679. For the ratings assigned, DBRS Morningstar’s analysis considered impacts consistent with the moderate scenario in the referenced commentary.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
The principal methodology is Rating Canadian Equipment Finance Securitization Transactions (October 11, 2019), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

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 [email protected].

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.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577