TORONTO, Feb. 1, 2013 /CNW/ - The purchase by Royal Bank of Canada ("RBC") of Ally Financial Inc.'s ("AFI") Canadian auto finance business, including Ally Credit Canada Limited ("ACCL") was completed today. Attached is a press release issued by RBC providing additional details regarding the completed transaction.
In connection with the purchase transaction, RBC has advised Canadian Capital Auto Receivables Asset Trust III ("CCARAT III") that it will be carrying out a number of corporate reorganizations. As a result, effective as of today, RBC has assumed the obligations of ACCL as seller and servicer of all securitized receivables in which CCARAT III currently has an interest, and as financial services agent of CCARAT III. AFI's obligations under the performance guarantee it previously provided in connection with the outstanding securitization transaction will continue to apply to RBC's obligations as seller and servicer.
The rating agencies that rate the notes issued by CCARAT III have confirmed that the assumption of ACCL's obligations as seller, servicer and financial services agent by RBC will not result in a downgrade or withdrawal of any of their ratings.