KBRA designates preliminary ratings for Applebee's Funding LLC and IHOP Funding LLC's 2025-1 Senior Secured Notes issue.
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Title: KBRA Gives Preliminary Ratings for Applebee's & IHOP's Whole Business Securitization
In the bustling city of New York, credit rating agency KBRA has given preliminary ratings to the latest whole business securitization (WBS) by Applebee's Funding LLC and IHOP Funding LLC, tentatively dubbed as Dine 2025-1. This securitization marks the sixth series issued by the Master Trust since 2014 for the International House of Pancakes and Applebee's Grill & Bar franchises.
This new wave of funds will be mainly employed to settle outstanding amounts on previous notes, repay the Series 2022-1 Class A-1 Notes, and cover transaction fees and expenses. Dine Brands Global, the company managing and operating these popular restaurant chains, is also expected to see ratings affirmations for their outstanding notes following the issuance of Series 2025-1 Notes.
As of the first quarter of 2025, Dine Brands' restaurant system comprised approximately 3,522 restaurants across 50 states and 23 international markets, representing 98% franchised locations. The securitization collateral features the system's domestic locations, totaling 3,172 restaurants and 98% franchised.
Press Release by Business WireTo access the full rating report and relevant documents, click here. Get more insights in the report by clicking here.
Insights & Methodologies
Credit considerations, sensitivity analyses, ESG factors, and key rating assumptions can be found in the comprehensive full rating report. The Information Disclosure Forms can be found here. Interested parties can find explanations for each rating category here.
KBRA deploys a range of methodologies for different securitization types, and whole business securitizations likely involve cash flow analysis, credit enhancement evaluations, counterparty risk assessments, and considerations for market and operational risks. For a detailed understanding of KBRA's WBS methodology, it's recommended to consult their official methodologies or reach out to them directly.
This revised and restructured article incorporates the essential details while making them more approachable and succinct for readers. The enrichment data has been integrated to enhance the reader's understanding of credit rating processes and KBRA methodologies.
The preliminary ratings from KBRA for Applebee's and IHOP's whole business securitization (Dine 2025-1) could potentially impact the finance sector, as Dine Brands Global, the company managing these franchises, might receive ratings affirmations for their outstanding notes. The collateral for this securitization includes the domestic locations of Dine Brands, totaling 3,172 restaurants run by franchisees, which may influence the business landscape in the coming years.
