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

DBRS Limited (Morningstar DBRS) confirmed its credit ratings of R-1 (high) (sf) on SURE Trust, Senior Short Term Notes, Series 2015-1, STABLE Trust, Senior Short Term Notes, Series 2018-1, SOUND Trust, Senior Short-Term Notes, Series 1998-1, and SAFE Trust, Senior Short-Term Notes, Series 1996-1 (collectively, the Trusts). The rating confirmations are pursuant to the inclusion of a new transaction (Transaction 111) to the Trusts on July 17, 2025.

As part of Morningstar DBRS' ongoing efforts to increase the transparency of reporting asset-backed commercial paper conduit activity, Morningstar DBRS' has also released a transaction summary report providing details of Transaction 111, which consists of a portfolio of uninsured first-lien residential mortgages originated by a federally regulated mortgage finance company in Canada.

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 the related principal and interest amounts.

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 (May 16, 2025; https://dbrs.morningstar.com/research/454196).

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

The principal methodology applicable to the credit rating is Rating Canadian Residential Mortgages, Home Equity Lines of Credit and Reverse Mortgages (October 29, 2024; https://dbrs.morningstar.com/research/441940).

The Morningstar DBRS Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. Morningstar DBRS analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://dbrs.morningstar.com/research/450604.

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 ratings were 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.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit 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 info-DBRS@morningstar.com.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 600
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.

Rating Canadian ABCP and Related Enhancement Features (February 24, 2025; https://dbrs.morningstar.com/research/448506)

Operational Risk Assessments for Canadian Structured Finance (March 28, 2025; https://dbrs.morningstar.com/research/450831)

Legal and Derivatives Criteria for Canadian Structured Finance (June 24, 2025; https://dbrs.morningstar.com/research/456831)

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.