DBRS Morningstar Confirms Credit Ratings on Enercare HS Portfolio Limited Partnership and Enercare Inc.’s Variable Rate Equipment Contract Backed Loans, Series 2019-1

DBRS Limited (DBRS Morningstar) confirmed its credit ratings on the Variable Rate Equipment Contract Backed Loans, Series 2019-1 (the Series 2019-1 Loans) jointly incurred by Enercare HS Portfolio Limited Partnership (the LP) and Enercare Inc. (as successor to Enercare Solutions Inc., the Co-Borrower) as follows:

-- Class A at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)

The Series 2019-1 Loans are backed by a portfolio of rental contracts for primarily residential and some commercial water heaters; water treatment equipment; home standby generators; and heating, ventilation, and air conditioning equipment. The LP and the Co-Borrower are jointly and severally liable for the repayment of the Series 2019-1 Loans.

ENVIRONMENTAL, SOCIAL, GOVERNANCE 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 (July 4, 2023).

Notes:
The principal methodology applicable to the credit ratings is the Master Canadian Structured Finance Surveillance Methodology (June 7, 2023; https://www.dbrsmorningstar.com/research/415503).

Other methodologies referenced in this transaction are listed at the end of this press release.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

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.

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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.

A description of how DBRS Morningstar analyses 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.