KBRA Assigns Preliminary Rating to Arby’s Funding, LLC, Series 2020-1

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to two note classes of Arby’s Funding, LLC, Series 2020-1, a whole business securitization.

This transaction is the third whole business securitization (“WBS”) issued by Arby’s Funding, LLC (“Issuer”). In connection with its first securitization transaction in 2015, Arby’s Restaurant Group, Inc. (“Arby’s”, “ARG”, or the “Company”) contributed most of its revenue-generating assets to the Issuer as collateral for the then offered notes. The collateral includes substantially all existing and future franchise agreements, existing and future company-operated restaurant royalties, rental income on fee-owned properties and intellectual property (“IP”).

As of March 29, 2020, the Arby’s restaurant system included 3,520 restaurants with annual system-wide sales of approximately $4.0 billion. The transaction includes royalty payments from 2,310 franchise locations and 1,188 company-operated restaurants, representing approximately 66% and 34% of total system-wide locations, respectively. The restaurant locations are located within the US across 48 states and in six foreign countries.

Click here to view the report. To access ratings and relevant documents, click here.

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.

Contacts

Analytical Contacts

Xilun Chen, Senior Director (Lead Analyst)

+1 (646) 731-2431

xchen@kbra.com

Abby Barkwell, Director

+1 (646) 731-3304

abarkwell@kbra.com

Anna Roginkin, Associate Director

+1 (646) 731-1212

aroginkin@kbra.com

Rosemary Kelley, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2337

rkelley@kbra.com

Business Development Contact

Ted Burbage, Managing Director

+1 (646) 731-3325

tburbage@kbra.com