DBRS Assigns Provisional Ratings to Canadian Capital Auto Receivables Asset Trust II Series 2006-2 Class A Notes, VPR Loans and Class B Notes

Dominion Bond Rating Service (DBRS) has assigned the following provisional ratings to Canadian Capital Auto Receivables Asset Trust II (the Trust):

-- AAA to the Auto Loan Receivables-Backed Notes, Series 2006-2, Class A-1
-- AAA to the Auto Loan Receivables-Backed Notes, Series 2006-2, Class A-2
-- AAA to the Auto Loan Receivables-Backed Notes, Series 2006-2, Class A-3
-- AAA to the VPR Loans
-- A to the Auto Loan Receivables-Backed Notes, Series 2006-2, Class B

On closing, the Trust will acquire a co-ownership interest in a portfolio of secured auto loans from General Motors Acceptance Corporation of Canada, Limited (GMAC Canada) through a two-step sale. The Trust will be able to acquire additional secured auto loans that meet certain established criteria for up to 12 months following closing. The Class A Notes and the Class B Notes are expected to provide for structured bullet payments, with the VPR Loans and Subordinated VPR Loans increasing or decreasing as necessary to provide the balance of funding.

The provisional ratings incorporate the following considerations:

(1) The very strong and consistent loss and delinquency performance of GMAC Canada’s owned or managed retail loan portfolio. Losses have been below 0.30% since 1999, and 90-day delinquency levels have typically been at the 0.01% level.

(2) The very high level of credit enhancement supporting the Class A Notes and the VPR Loans provided by overcollateralization of 2.0%, non-amortizing cash of 0.5%, Class B Note subordination of 2.50% and an initial annual interest spread in excess of 2.5%.

(3) The high level of credit enhancement supporting the Class B Notes provided by overcollateralization of 2.0%, non-amortizing cash of 0.5% and an initial annual interest spread in excess of 2.5%.

(4) The significant experience of GMAC LLC in the origination and servicing of retail auto loans and securitization transactions backed by those assets.

Stress tests using assumptions, including servicer fees and large increases in delinquency and credit losses, indicate that credit enhancement provides sufficient protection to the Class A Notes and the VPR Loans to warrant the AAA ratings, and that credit enhancement provides sufficient protection to the Class B Notes to warrant the “A” rating.