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

DBRS Limited (Morningstar DBRS) confirmed its credit ratings of R-1 (high) (sf) on SAFE Trust, Senior Short-Term Notes, Series 1996-1 (SAFE Trust Notes), SOUND Trust, Senior Short-Term Notes, Series 1998-1 (SOUND Trust Notes), SURE Trust, Senior Short-Term Notes, Series 2015-1 (SURE Trust Notes), and STABLE Trust, Senior Short Term Notes, Series 2018-1 (STABLE Trust Notes, and together with SAFE Trust Notes, SOUND Trust Notes, and SURE Trust Notes, the Notes). The credit rating confirmation is based on the addition of a new transaction (Transaction 107) on October 2, 2024.

CREDIT RATING RATIONALE/DESCRIPTION
As part of its ongoing efforts to increase the transparency of reporting on asset-backed commercial paper conduit activity, Morningstar DBRS released a transaction summary report providing details of Transaction 107, which consists of a portfolio of automobile, and sport-utility vehicle fixed-rate retail auto lease contracts originated by a captive auto finance company operating in Canada.

Morningstar DBRS' credit ratings on the Notes addresses the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are interest and principal.

Morningstar DBRS' credit rating does not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk
that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS   
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.
 
A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024), https://dbrs.morningstar.com/research/437781.

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 25, 2024), https://dbrs.morningstar.com/research/439989/.

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

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 info-DBRS@morningstar.com.

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.

Morningstar DBRS 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
DBRS Tower, 181 University Avenue, Suite 700
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://dbrs.morningstar.com/about/methodologies.

-- Operational Risk Assessments for Canadian Structured Finance (August 6, 2024),
https://dbrs.morningstar.com/research/437547
-- Legal and Derivatives Criteria for Canadian Structured Finance (August 12, 2024),
https://dbrs.morningstar.com/research/437761
-- Rating Canadian ABCP and Related Enhancement Features (February 27, 2024),
https://dbrs.morningstar.com/research/428658

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

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.