Press Release

DBRS Morningstar Assigns Provisional Ratings of AAA (sf), A (high) (sf), and BBB (high) (sf) to Golden Credit Card Trust, Series 2023-1

Consumer Loans & Credit Cards
March 27, 2023

DBRS Limited (DBRS Morningstar) assigned the following provisional ratings to the Credit Card Receivables-Backed Notes, Series 2023-1 (the Notes) to be issued by Golden Credit Card Trust (the Trust):

-- AAA (sf) to the Credit Card Receivables-Backed Class A Floating Rate Notes, Series 2023-1 (the Class A Notes)
-- A (high) (sf) to the Credit Card Receivables-Backed Class B Notes, Series 2023-1 (the Class B Notes)
-- BBB (high) (sf) to the Credit Card Receivables-Backed Class C Notes, Series 2023-1 (the Class C Notes)

The Class A Notes are denominated in U.S. dollars. A cross-currency, interest rate swap is expected to be in place for the Class A Notes.

The finalization of the ratings is contingent upon receipt of final documents conforming to information already received by DBRS Morningstar.

DBRS Morningstar considered the following factors in its analysis:

(1) For the Class A Notes, credit enhancement (CE) will be available through subordination of 6.5%, excess spread and the Series Reserve Account, which could build up to 5.0% of the initial invested amount.

(2) For the Class B Notes, CE will be available through subordination of 2.0%, excess spread and the Series Reserve Account.

(3) For the Class C Notes, CE will be available through excess spread and the Series Reserve Account.

(4) Over the past two years, three-month average payment rates and gross yield have averaged 66% and 25%, respectively. The three-month average net loss rate was 1.5% as of February 28, 2023, and remains one of the lowest loss rates of any Canadian issuer of credit card receivables-backed notes. Overall performance of the portfolio has been strong and remains better than historical levels prior to the Coronavirus Disease (COVID-19) pandemic.

(5) The receivables pool is a well-diversified and seasoned portfolio, originated and managed by the Royal Bank of Canada (rated AA (high) with a Stable trend by DBRS Morningstar), one of the largest financial institutions in Canada as measured by assets.

DBRS Morningstar stress testing indicates that simultaneous declines in yield and payment rates and increases in losses would not result in the Trust’s failure to repay the Notes on a timely basis. The severity of the tests applied is commensurate with the respective ratings of the Notes.

DBRS Morningstar’s analysis also indicates that the Class B Notes and Class C Notes are expected to withstand more punitive stress multiples for requested rating categories, warranting a (high) designation and resulting in A (high) (sf) and BBB (high) (sf) ratings, respectively.

DBRS Morningstar notes that there is no cap on indemnity amounts payable to service providers in the payment waterfalls as expected in DBRS Morningstar’s “Legal Criteria for Canadian Structured Finance.” If the indemnity is above a reasonable amount, DBRS Morningstar will assess the impact of uncapped cash outflow at the time and take appropriate rating action.

There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at (May 17, 2022).

All figures are in Canadian dollars unless otherwise noted.

The principal methodology applicable to the ratings is Rating Canadian Credit Card and Personal Line of Credit Securitizations (November 1, 2022;

Other methodologies referenced in this transaction are listed at the end of this press release. These may be found at:

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report:

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.

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at [email protected].

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

The rating methodologies used in the analysis of this transaction can be found at:

Derivatives Criteria for Canadian Structured Finance (June 22, 2022;

Legal Criteria for Canadian Structured Finance (June 22, 2022;

Operational Risk Assessments for Canadian Structured Finance (December 13, 2022;

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