Morningstar DBRS Finalizes Provisional Rating of R-1 (high) (sf) on Rideau Trail Funding Trust Series A Senior Short Term Notes

DBRS Limited (Morningstar DBRS) finalized the provisional rating of R-1 (high) (sf) on the Series A Senior Short Term Notes (the Notes) issued by Rideau Trail Funding Trust (the Trust). The Trust is a new asset-backed commercial paper conduit initiated by its financial services agent, TD Securities Inc.

The finalized provisional rating is based on Morningstar DBRS' review of the Trust's documentation, which is consistent with Morningstar DBRS' applicable methodologies, including its liquidity agreement, that meets the Global Liquidity Standard indicated in DBRS' "Rating Canadian ABCP and Related Enhancement Features" methodology.

The rating on the Notes was also finalized on the basis of one residential mortgage and insured home equity line of credit transaction, one insured home equity line of credit transaction, one motorcycle loans transactions, and one auto loans transaction, each entered into by the Trust. DBRS assigned a transaction credit assessment of AAA to each transaction entered by the Trust and, as a result, DBRS assigned a final rating of R-1 (high) (sf) to the Notes. Transaction summaries for each transaction entered into by the Trust in connection with the finalized provisional rating on the Notes are available at https://dbrs.morningstar.com.

Morningstar DBRS' credit rating 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.

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

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

The principal methodologies applicable to the credit rating are:

Rating Canadian ABCP and Related Enhancement Features (February 27, 2024) https://dbrs.morningstar.com/research/428658/rating-canadian-abcp-and-related-enhancement-features
Rating Canadian Auto Retail Loan and Lease Securitizations (September 25, 2024) https://dbrs.morningstar.com/research/439988/rating-canadian-auto-retail-loan-and-lease-securitizations
Rating Canadian Residential Mortgages, Home Equity Lines of Credit and Reverse Mortgages (October 29, 2024) https://dbrs.morningstar.com/research/441940/rating-canadian-residential-mortgages-home-equity-lines-of-credit-and-reverse-mortgages

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 (August 12, 2024), https://dbrs.morningstar.com/research/437761

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/417279.

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