Mortgage transaction and rated notes
A federally regulated mortgage finance company in Canada originated the mortgages in Transaction 117. Morningstar DBRS published a transaction summary alongside the rating action as part of its effort to make reporting on asset-backed commercial paper conduit activity more transparent.
The confirmations cover the Series A Notes of Banner Trust and Reliant Trust; the Senior Short-Term Asset-Backed Notes of Merit Trust, Prime Trust and Zeus Receivables Trust; Rideau Trail Funding Trust's Series A Senior Short Term Notes; and Elgin Trail Funding Trust's Series 1 (CA) Short Term Asset-Backed Notes. No rating trend was listed for any of the notes.
For its analysis, the agency used Rating Canadian Residential Mortgages, Home Equity Lines of Credit, and Reverse Mortgages, its principal methodology dated October 31, 2025.
TD's role and an earlier transaction
One of the seven conduits, Elgin Trail Funding Trust, is sponsored by The Toronto-Dominion Bank (TD). Morningstar DBRS's February 19, 2026 provisional rating report identifies TD as the trust's administrator and Financial Services Agent, with TD Securities Inc. serving as Sub-Financial Services Agent.
The October confirmations are the latest in a recurring series associated with new transactions. On June 17, 2026, Morningstar DBRS maintained the same R-1 (high) (sf) ratings on six of the trusts following the addition of Transaction 115: Banner, Merit, Elgin Trail, Reliant, Rideau Trail and Zeus.
That earlier transaction contained credit card receivables. TD committed to fully wrap Transaction 115 in each of those six trusts under a liquidity agreement.
Scope of the ratings
The ratings assess credit risk on the principal and interest obligations identified in the applicable transaction documents. They exclude the risk of nonpayment on other contractual obligations that do not qualify as financial obligations.
Morningstar DBRS's short-term debt scale expresses its view of the risk that an issuer will fail to pay its short-term financial obligations on time. The agency reported that no environmental, social or governance factors significantly or relevantly affected this credit analysis.
Rating disclosures
The rated entity requested the ratings, making them solicited ratings. Morningstar DBRS said it was given access to accounts, management and other relevant internal documents belonging to the entity or related entities for the rating action.
The agency's report specifies Canadian dollars for all figures unless otherwise noted.
