DBRS Finalizes Ratings for Canadian Revolving Auto Floorplan Trust, Series 2007-D1, D2 and D3

DBRS has today finalized the ratings of the Auto Floorplan Receivables-Backed Notes, Series 2007-D1, Series 2007-D2 and the Series 2007-D3 (collectively the Notes) issued by Canadian Revolving Auto Floorplan Trust (CRAFT or the Trust) as follows:

-- $200,000,000 Series 2007-D1 floating-rate notes at AAA
-- $450,000,000 Series 2007-D2 fixed-rate notes at AAA
-- $250,000,000 Series 2007-D3 fixed-rate notes at AAA

On closing, the Trust will acquire an interest in a portfolio of secured receivables from DaimlerChrysler Financial Services Canada Inc. (DCFSC). The Trust will continue to acquire additional floorplan receivables that meet certain established criteria following closing. The Notes are expected to provide for a combination of structured bullet payments, semi-annual interest payments and floating-rate payments, with the seller’s interest increasing or decreasing as necessary to provide the balance of funding.

The ratings incorporate the following considerations:

(1) The historic low net loss levels and strong monthly payment rates exhibited by the portfolio.

(2) The levels of credit enhancement available to support the Notes: 21.75% for the Notes, provided by 20.0% overcollateralization and a cash reserve equal to 1.75% of the Notes outstanding.

(3) A required pool balance of 105% to cover dilution risk.

(4) Strong historic performance by DCFSC in servicing the dealer network, particularly in dealing with problem accounts.

(5) The dealers are both seasoned and geographically diverse, representing a cross-section of the country, with structural concentration limits designed to create a strong and diverse pool.