DBRS Morningstar Confirms Ridge Trust’s Sixth Amended and Restated Series A Note Liquidity Agreement at AAA (sf)

DBRS Limited (DBRS Morningstar) confirmed the rating of AAA (sf) on the Sixth Amended and Restated Series A Note Liquidity Agreement (the Liquidity) provided by a liquidity lender to Ridge Trust (the Trust) as support for the Trust’s Series A Notes (the Asset-Backed Commercial Paper (ABCP); rated R-1 (high) (sf) by DBRS Morningstar). The Liquidity meets the global liquidity standard expected by DBRS Morningstar for the ABCP as outlined in Schedule A of DBRS Morningstar’s “Rating Canadian ABCP and Related Enhancement Features” methodology (March 2020).

The rating on the Liquidity is an opinion on the Trust’s capacity to meet its financial obligations to the liquidity lender in accordance with the terms of the Liquidity. As indicated in Schedule E of DBRS Morningstar’s “Rating Canadian ABCP and Related Enhancement Features” methodology, the rating on the Liquidity is based on the underlying transactions and programs funded by the Trust (the Assets) as the collections from those Assets will be the basis upon which the Trust will be in a position to meet its financial obligations under the Liquidity in the event that it draws on the Liquidity. All Assets currently have a transaction assessment (as defined in DBRS Morningstar’s “Legal Criteria for Canadian Structured Finance” methodology (June 2020) of AAA (sf) as outlined in DBRS Morningstar’s Monthly Canadian ABCP Reports.

On June 1, 2020, the DBRS Morningstar sovereigns group published its outlook on the impact of the Coronavirus Disease (COVID-19) on key economic indicators for the 2020–22 time frame, which was updated from the initial outlook that was published on April 16, 2020. For details, please see https://www.dbrsmorningstar.com/research/361867. For the confirmed ratings, DBRS Morningstar considered impacts consistent with the moderate scenario in the referenced commentary in its analysis.

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.

The rating was assigned at the request of the liquidity lender.

Notes:

The principal methodology is Master Canadian Structured Finance Surveillance Methodology (June 28, 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 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.

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

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