DBRS Morningstar Updates Transaction Summary 85 for Merit Trust, Prime Trust, Zeus Receivables Trust, Banner Trust, and Reliant Trust

DBRS Limited (DBRS Morningstar) released an updated Transaction Summary report that provides details on Transaction 85 of Merit Trust, Prime Trust, Zeus Receivables Trust, Banner Trust, and Reliant Trust, which is secured by a portfolio of conventional residential mortgages originated by a credit union in Ontario. The update reflects an increase to the required cash collateral amount. Due to higher expected levels of payment deferrals in light of Coronavirus Disease (COVID-19), an additional Deferral Reserve Amount of 0.40% of the Program Amount (subject to a floor of 40% of the highest historical balance) forms part of the required cash collateral amount to provide additional support to the transaction.

DBRS Morningstar’s analysis includes additional stresses to expected performance as a result of the global efforts to contain the spread of coronavirus. 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. 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:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Canadian Residential Mortgages, Home Equity Lines of Credit and Reverse Mortgages (November 6, 2019) and Rating Canadian ABCP and Related Enhancement Features (March 18, 2020), 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.

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

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