DBRS Finalizes CCARAT 2005-1 & VPR loans at AAA

Dominion Bond Rating Service ("DBRS") has issued a finalized rating of AAA in respect of the Auto Loan Receivables-Backed Notes, Series 2005-1 (“Notes”) and the VPR Loans issued by Canadian Capital Auto Receivables Asset Trust (the “Trust”).

On closing, the Trust acquired a co-ownership interest in a portfolio of retail 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 Notes are expected to provide for structured bullet payments, with VPR Loans increasing or decreasing as necessary to provide the balance of funding. The provisional ratings incorporate the following considerations:
(1) There has been very strong and consistent loss and delinquency performance of GMAC Canada. Losses have been at or below 0.28% since 1999, and 90-day delinquency levels have typically been at the 0.01% level.
(2) There is a very high level of credit enhancement supporting the Notes and VPR Loans provided by overcollateralization of 4.25%, cash of 0.5%, and an initial annual interest spread in excess of 2.0%.
(3) All loans must be in respect of new vehicles and must have been originated at special financing rates. These assets have historically performed well.

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