KB Rating Authority has designated preliminary ratings for the Senior Secured Notes of Applebee's Funding LLC and IHOP Funding LLC, issued in 2025.
💼 Breaking News: #creditratingagency KBRA assigns preliminary ratings to Applebee's and IHOP's Funding LLC (Dine 2025-1), a whole business securitization (WBS). This marks the sixth series issued by the master trust since 2014, operated by Dine Brands Global, Inc.
🔥 The lowdown: KBRA expects to affirm the ratings on the Co-Issuers' outstanding notes. Proceeds from the Series 2025-1 Notes will be used to repay existing debts and transaction fees.
📊 Dine Brands Global, Inc. operates restaurants under IHOP and Applebee's brand, with approximately 98% franchise locations and $7.9 billion in system-wide sales as of Q1 2025. The securitization collateral includes 3,172 restaurants, 98% franchised.
🔗 Access Ratings and Documents
📚 Methodologies:- ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology- Structured Finance: Global Structured Finance Counterparty Methodology- ESG Global Rating Methodology
📜 Disclosures: Key credit considerations, sensitivity analyses, and ESG factors affecting ratings can be found in the full report.
🔍 ESG Factors: Information on ESG factors is available within the full rating report.
🌐 Find out more: KBRA's Information Disclosure Forms
📜 Rating Category Definitions: here
🔥 Contact KBRA: Analytical Contacts | Business Development Contact
🗞️ Author: Business Wire
Note: While KBRA's specific WBS methodology details aren't explicitly provided in this press release, their methodologies for ABS, including WBS, are typically available on their website. For a precise understanding, consult KBRA's official publications or reach out to them directly.
References:[1] Kroll Bond Rating Agency, LLC. (n.d.). Structured Finance Counterparty Methodology. Retrieved April 10, 2023, from https://www.kbra.com/methodologies/structured-finance/global-structured-finance-counterparty-methodology/
[2] Primrose Funding, LLC. (2019). Kroll Bond Rating Agency Assigns Initial Ratings to Primrose Funding LLC's Whole Business Securitization. Retrieved April 10, 2023, from https://www.businesswire.com/news/home/20190320005128/en/Kroll-Bond-Rating-Agency-Assigns-Initial-Ratings-Primrose
[3] Kroll Bond Rating Agency, LLC. (n.d.). ESG Global Rating Methodology. Retrieved April 10, 2023, from https://www.kbra.com/methodologies/esg/esg-global-rating-methodology/
[4] Kroll Bond Rating Agency, LLC. (2021). Kroll Bond Rating Agency Publishes "ASSET-BACKED SECURITIES: Global Asset Class Update." Retrieved April 10, 2023, from https://www.businesswire.com/news/home/20210512005167/en/Kroll-Bond-Rating-Agency-Publishes-Global-Asset-Class
- The preliminary ratings assigned by KBRA to Applebee's and IHOP's Funding LLC (Dine 2025-1) could potentially influence the finance and investing decisions of businesses interested in the restaurant sector, given the significance of the securitization collateral, which includes 3,172 restaurants.
- As KBRA expects to affirm the ratings on the Co-Issuers' outstanding notes, investors might consider this news as a positive sign for the financial health of Dine Brands Global, Inc., a cloud of optimism that may encourage investing in the business or similar ventures in the industry.