DBRS Morningstar Finalizes Provisional Ratings on Certain Guarantee Linked Notes Issued by Manitoulin USD Ltd., Algonquin 2022-2.
ENPNewswire-May 3, 2022--DBRS Morningstar Finalizes Provisional Ratings on Certain Guarantee Linked Notes Issued by Manitoulin USD Ltd., Algonquin 2022-2
(C)2022 ENPublishing - http://www.enpublishing.co.uk
Release date- 02052022 - DBRS Morningstar Finalizes Provisional Ratings on Certain Guarantee Linked Notes Issued by Manitoulin USD Ltd., Algonquin 2022-2.
DBRS, Inc. (DBRS Morningstar) finalized the following provisional ratings on the Algonquin Series 2022-2 Class B Guarantee Linked Notes (the Class B Notes), the Algonquin Series 2022-2 Class C Guarantee Linked Notes (the Class C Notes), and the Algonquin Series 2022-2 Class D Guarantee Linked Notes (the Class D Notes; together, with the Class B Notes and 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 April 28, 2022, between the Issuer as Guarantor and the Bank of Montreal (BMO; rated AA with a Stable trend by DBRS Morningstar) as Beneficiary with respect to a portfolio of primarily U.S. and Canadian senior secured and senior unsecured loans originated or managed by BMO:
Class B Notes at AA (sf)
Class C Notes at A (sf)
Class D Notes at BBB (low) (sf)
The ratings on the Notes address the timely payment of interest and ultimate payment of principal on or before the Scheduled Termination Date (as defined in the Financial Guarantee referenced above). The payment of the interest due on the Notes is subject to the Beneficiary's ability to pay the Guarantee Fee Amount (as defined in the Financial Guarantee referenced above).
To assess portfolio credit quality, DBRS Morningstar may provide a credit estimate, internal assessment, or ratings mapping of BMO's internal ratings model. Credit estimates, internal assessments, and ratings mappings are not ratings; rather, they represent an abbreviated analysis, including model-driven or statistical components of default probability for each obligor that is used in assigning a rating to a facility sufficient to assess portfolio credit quality.
The ratings reflect the following considerations:
(1) The Financial Guarantee to be dated as of April 28, 2022.
(2) The integrity of the transaction structure.
(3) DBRS Morningstar's assessment of the portfolio quality.
(4) Adequate credit enhancement to withstand projected collateral loss rates.
With regard to the Coronavirus Disease (COVID-19) pandemic, the magnitude and extent of...
To continue reading
Request your trial