Covered Bonds, Series CBL1
Covered Bonds, Series CBL2
DBRS Morningstar had placed the credit ratings on the Covered Bonds UR-Neg. on
KEY CREDIT RATING CONSIDERATIONS
On
The confirmation of the
A CBAP reflects the credit strength of the Reference Entity (RE) as the source of payment for the Program. The CBAP is now at BBB (high), which is the Long-Term Senior Debt rating of LBC. LBC is the RE for the Program.
A Legal and Structuring Framework (LSF) assessment of Strong associated with the Program.
A CPCA of
An LSF-Implied Likelihood (LSF-L) of AA.
A two-notch uplift from the LSF-L for high recovery prospects to achieve the
A level of OC of 22.0% (based on the Asset Percentage of 82.0%) to which DBRS Morningstar gives credit.
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/416784 (
Notes:
The principal methodology applicable to the credit ratings is Global Methodology for Rating and Monitoring Covered Bonds (
Other methodologies referenced in this transaction are listed at the end of this press release.
The DBRS
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.
The credit rating was initiated at the request of the rated entity.
The rated entity or its related entities did participate in the credit rating process for this credit rating action.
DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.
This is a solicited credit rating.
Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.
More details on the
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The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.
Predictive model: Canadian RMBS Model (
Link: https://www.dbrsmorningstar.com/models/
A description of how DBRS Morningstar analyzes structured finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/410863.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.
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