DBRS Morningstar Confirms Ratings on Enercare HS Portfolio Limited Partnership and Enercare Inc.’s Variable Rate Equipment Contract Backed Loans, Series 2019-1

DBRS Limited (DBRS Morningstar) confirmed its ratings on the following Variable Rate Equipment Contract Backed Loans, Series 2019-1 (the Series 2019-1 Loans) jointly incurred by Enercare HS Portfolio Limited Partnership (the LP) and Enercare Inc. (Enercare, as successor to Enercare Solutions Inc., the Co-Borrower):

-- Class A at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)

DBRS Morningstar notes that, effective December 17, 2019, Enercare HS Portfolio Limited Partnership and Enercare Solutions Inc. changed its name to Enercare HS Portfolio Limited Partnership and Enercare Inc.

DBRS Morningstar initially published its outlook on the Coronavirus Disease (COVID-19) pandemic’s impact on key economic indicators for the 2020–22 time frame in April 2020. DBRS Morningstar last updated the macroeconomic scenarios on December 2, 2020, in its “Global Macroeconomic Scenarios: December Update” at https://www.dbrsmorningstar.com/research/370672. For the Series 2019-1 Loans, DBRS Morningstar considered impacts consistent with the moderate scenario in the referenced commentary in its analysis. The rating confirmations include additional analysis and, where appropriate, additional stresses to expected performance as a result of global efforts to contain the spread of the coronavirus pandemic.

The Series 2019-1 Loans are backed by a portfolio of rental contracts on primarily residential and some commercial water heaters; water treatment equipment; and heating, ventilation, and air conditioning units. The LP and the Co-Borrower are jointly and severally liable for the repayment of the Series 2019-1 Loans. The ratings are assigned at the request of the lenders for regulatory purposes.

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 Master Canadian Structured Finance Surveillance Methodology (August 31, 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.

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.dbrs.com or contact us at [email protected].

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