DBRS Morningstar Assigns Provisional Ratings of AAA (sf), A (sf), and BBB (sf) to Canadian Credit Card Trust II, Series 2021-1.

ENPNewswire-October 8, 2021--DBRS Morningstar Assigns Provisional Ratings of AAA (sf), A (sf), and BBB (sf) to Canadian Credit Card Trust II, Series 2021-1

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Release date- 07102021 - DBRS Limited (DBRS Morningstar) assigned the following provisional ratings to Series 2021-1 (the Notes) to be issued by Canadian Credit Card Trust II (the Trust).

AAA (sf) to the Credit Card Receivables-Backed Class A Notes, Series 2021-1 (the Class A Notes)

A (sf) to the Credit Card Receivables-Backed Class B Notes, Series 2021-1 (the Class B Notes)

BBB (sf) to the Credit Card Receivables-Backed Class C Notes, Series 2021-1 (the Class C Notes)

The finalization of the ratings is contingent upon receipt of final documents conforming to information already received.

DBRS Morningstar considered the following factors in its analysis, each of which includes additional analysis and, where appropriate, adjustments to expected performance assumptions as a result of the global efforts to contain the spread of the Coronavirus Disease (COVID-19). For the ratings assigned, DBRS Morningstar's analysis considered the baseline macroeconomic scenarios for rated sovereign economies, available in its commentary 'Baseline Macroeconomic Scenarios For Rated Sovereigns,' published on September 8, 2021. These baseline macroeconomic scenarios replace DBRS Morningstar's moderate and adverse coronavirus pandemic scenarios, which were first published in April 2020. The baseline macroeconomic scenarios reflect DBRS Morningstar's view that, although the coronavirus remains a risk to the outlook, uncertainty around the macroeconomic effects of the pandemic has gradually receded. Current median forecasts considered in the baseline macroeconomic scenarios incorporate some risks associated with further outbreaks, but they remain fairly positive on recovery prospects given expectations of continued fiscal and monetary policy support. The policy response to the coronavirus may nonetheless bring other risks to the forefront in the coming months and years. For details see https://www.dbrsmorningstar.com/research/384150.

(1) For the Class A Notes, credit enhancement will be available through subordination of 5.75%, excess spread, and the cash collateral account, which could build up to 5.0% of the initial invested amount.

(2) For the Class B Notes, credit enhancement will be available through subordination of 2.75%, excess spread, and the cash...

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