DBRS Morningstar Confirms Credit Ratings on SAFE Trust and SOUND Trust at R-1 (high) (sf)

DBRS Limited (DBRS Morningstar) confirmed its credit ratings on the Senior Short-Term Notes, Series 1996-1 (1996-1 Notes) issued by SAFE Trust (SAFE), and the Senior Short-Term Notes, Series 1998-1 (1998-1 Notes) issued by SOUND Trust (SOUND, and together with SAFE, The Trusts) at R-1 (high) (sf). The 1996-1 Notes and 1998-1 Notes are collectively referred to as the Notes. The Rating Confirmations are based on the addition of a new transaction to the Trusts (Transaction 99) on October 25, 2023.

CREDIT RATING RATIONALE/DESCRIPTION
As part of DBRS Morningstar’s ongoing efforts to increase the transparency of reporting on asset-backed commercial
paper conduit activity, DBRS Morningstar released a transaction summary report providing details of Transaction 99,
which consists of a portfolio of fixed-rate retail auto lease receivable contracts secured by new and used automobiles, and sport-utility vehicles.

DBRS Morningstar’s credit ratings on the Notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents.

DBRS Morningstar’s credit ratings do not address non-payment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
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 (July 4, 2023) https://www.dbrsmorningstar.com/research/416784.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology applicable to the credit rating is Rating Canadian Auto Retail Loan and Lease Securitizations (September 29, 2023) https://www.dbrsmorningstar.com/research/421298

Other methodologies referenced in this transaction are listed at the end of this press release.

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: https://www.dbrsmorningstar.com/research/421227/baseline-macroeconomic-scenarios-for-rated-sovereigns-september-2023-update.

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 credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

DBRS Morningstar had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

DBRS Limited
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Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

Operational Risk Assessments for Canadian Structured Finance (April 4, 2023), https://www.dbrsmorningstar.com/research/412270/operational-risk-assessments-for-canadian-structured-finance

Legal Criteria for Canadian Structured Finance (June 20, 2023), https://www.dbrsmorningstar.com/research/416101/legal-criteria-for-canadian-structured-finance

Rating Canadian ABCP and Related Enhancement Features (March 3, 2023)
https://www.dbrsmorningstar.com/research/410528/rating-canadian-abcp-and-related-enhancement-features

A description of how DBRS Morningstar analyses structured finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/410863.

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