DBRS Finalizes Provisional Ratings to Genesis Trust’s Series 2006-1 and 2006-2 Notes

Dominion Bond Rating Service (DBRS) has today finalized the provisional ratings to Genesis Trust’s Line of Credit Receivables-Backed Notes, Series 2006-1, Class A, B and C, and Series 2006-2, Class A, B and C.

The ratings are based on three factors. Firstly, a high level of credit enhancement provided by the subordination (3.9% and 1.9% for Class A and Class B Notes, respectively) and excess spread (estimated to be 1.35% per annum) allows the Notes to withstand stressed increases in loss frequency and severity. Secondly, all lines of credit accounts are secured by mortgages on residential properties subject to maximum loan to value of 75%. Lastly, loss levels have been extremely low and quite stable. The average annual loss rate over the past 3.5 years was approximately one basis point.

Proceeds from the Notes were used to purchase undivided co-ownership interests in a pool of real estate secured, variable rate line of credit accounts originated by Toronto-Dominion Bank (TD) and The Canada Trust Company.

The very low and stable loss rates reflect the strong underwriting standards of TD and the excellent collateral support. All the accounts are secured by real estate and there is a good geographic diversity of obligors.