Morningstar DBRS Confirms Credit Ratings on BINOM CDN RMBS I LP, Series 2023-1

DBRS Limited (Morningstar DBRS) confirmed the following credit ratings on the notes (the Notes) issued by BINOM CDN RMBS I LP, Series 2023-1:

-- Class A Mortgage Pass-Through Notes, Series 2023-1 at AAA (sf) (the Class A Notes)
-- Class B Mortgage Pass-Through Notes, Series 2023-1 at A (sf) (the Class B Notes)

The credit rating actions are based on the following factors as of August 2024:
(1) The collateral comprises a pool of first-lien, fixed-rate, uninsured, Canadian residential mortgages (the Mortgage Loans). The pool balance has amortized to $122.1 million, representing a pool factor of 74.8%.

(2) Credit enhancement for the Class A Notes, provided by subordination and the Equity Notional Principal Amount has increased to 20.1% of the outstanding pool balance from 15.0% at issuance. Credit enhancement for the Class B Notes, provided by the Equity Notional Principal Amount has increased to 8.0% of the outstanding pool balance from 6.0% at issuance.

(3) Collateral performance since inception has been within Morningstar DBRS expectations, with no reported losses. Losses are allocated to the Notes in reverse order of their priority payment. The Equity Notional Principal Amount will absorb losses first.

4) The Mortgage Loans were sourced and underwritten by Equitable Bank (Equitable) and funded by Cortage S.à r.l., an indirect subsidiary of Blackstone Real Estate Debt Strategies IV Holdings L.P., an investment vehicle of a private equity fund managed by Blackstone Real Estate Debt Strategies. The Mortgage Loans are serviced by Equitable, the seventh largest Schedule I Bank and a leader in uninsured single-family residential mortgage lending through the broker channel in Canada. Equitable has significant experience underwriting, servicing and managing securitizations.

Morningstar DBRS updates the performance and characteristics of the custodial pool and the rated notes each month in its Monthly Canadian ABS Report on dbrs.morningstar.com.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

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.

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 (13 August 2024) https://dbrs.morningstar.com/research/437781.

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

The principal methodology applicable to the credit ratings is Master Canadian Structured Finance Surveillance Methodology (06 August 2024) https://dbrs.morningstar.com/research/437538.

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.

-- Legal and Derivatives Criteria for Canadian Structured Finance (12 August 2024)
https://dbrs.morningstar.com/research/437761
-- Rating Canadian Residential Mortgages, Home Equity Lines of Credit and Reverse Mortgages (28 June 2024)
https://dbrs.morningstar.com/research/435275
-- Operational Risk Assessments for Canadian Structured Finance (06 August 2024)
https://dbrs.morningstar.com/research/437547
-- DBRS Canadian RMBS Model 5.0.0.3
https://dbrs.morningstar.com/models

A description of how Morningstar DBRS analyses 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 dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.