Morningstar DBRS Discontinues and Withdraws Credit Ratings on Certain Guarantee Linked Notes and Tranche Amounts of Manitoulin USD Ltd., Muskoka 2022-1

DBRS, Inc. (Morningstar DBRS) discontinued and withdrew its credit ratings on the Muskoka 2022-1 Class B Guarantee Linked Notes (the Class B Notes), the Muskoka 2022-1 Class C Guarantee Linked Notes (the Class C Notes), and the Muskoka Series 2022-1 Class D Guarantee Linked Notes (the Class D Notes; together, with the Class B and the Class C Notes, the Notes) issued by Manitoulin USD Ltd. (the Issuer) referencing the executed Junior Loan Portfolio Financial Guarantees (the Financial Guarantee), dated as of October 19, 2022, between the Issuer as Guarantor and the Bank of Montreal (BMO; rated AA with a Stable trend by Morningstar DBRS) as Beneficiary with respect to a portfolio of U.S. and Canadian senior secured and senior unsecured loans originated or managed by BMO.

Morningstar DBRS also discontinued and withdrew its provisional credit ratings on the Tranche A Amount, Tranche B Amount, Tranche C Amount, and Tranche D Amount (collectively, the Tranche Amounts) of two unexecuted, unfunded financial guarantees (the Unfunded Financial Guarantees) of Manitoulin USD Ltd., Muskoka 2022-1 with respect to a portfolio of primarily U.S. and Canadian senior secured and senior unsecured loans originated or managed by BMO.

The provisional credit ratings on the Tranche Amounts addressed the likelihood of a reduction to the respective tranche notional amounts resulting from obligor defaults within the guaranteed portfolio during the period from the Effective Date (as defined in the Financial Guarantee) until the Scheduled Termination Date (as defined in the Financial Guarantee). For obligors within the guaranteed portfolio, default events are limited to payment default, insolvency, and restructuring events.

CREDIT RATING RATIONALE/DESCRIPTION
The discontinued-repaid credit rating actions with respect to the Notes reflect the full repayment of principal and interest due on the Notes. The discontinued-withdrawn credit rating actions with respect to the Tranche Amounts are a result of a rating withdrawal request by the Issuer, following the Optional Call Date of August 11, 2025, which was designated as the Effective Guarantee Termination Date.

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 transaction's respective press release 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 factors 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 U.S. dollars unless otherwise noted.

The principal methodology applicable to the credit ratings is the Global Methodology for Rating CLOs and Corporate CDOs (July 9, 2025 https://dbrs.morningstar.com/research/458009).

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

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.

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

These credit ratings are endorsed by DBRS Ratings Limited for use in the United Kingdom, and by DBRS Ratings GmbH for use in the European Union, respectively. The following additional regulatory disclosures apply to endorsed credit ratings:

The last credit rating action on this issuer took place on February 14, 2025, when Morningstar DBRS confirmed its credit ratings on the Notes and on the Tranche Amounts.

For further information on Morningstar DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://registers.esma.europa.eu/cerep-publication. For further information on Morningstar DBRS historical default rates published by the Financial Conduct Authority (FCA) in a central repository, see https://data.fca.org.uk/#/ceres/craStats.

Lead Analyst: Joseph Priolo, Senior Vice President, Sector Lead - US Structured Credit Ratings, CLOs
Rating Committee Chair: Glen Leppert, Associate Managing Director, US Structured Credit
Initial Rating Date: October 13, 2022

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

Legal Criteria for U.S. Structured Finance (December 03, 2024)
https://dbrs.morningstar.com/research/444064

Interest Rate Stresses for U.S. Structured Finance Transactions (March 27, 2025)
https://dbrs.morningstar.com/research/450750

Operational Risk Assessment for Collateralized Loan Obligations (CLOs) and Corporate Collateralized Debt Obligations (CDOs) (July 17, 2025)
https://dbrs.morningstar.com/research/459033

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