DBRS Morningstar Takes Rating Actions on Six BXG Receivables Note Trust Transactions.
ENPNewswire-September 15, 2021--DBRS Morningstar Takes Rating Actions on Six BXG Receivables Note Trust Transactions
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Release date- 14092021 - DBRS, Inc. (DBRS Morningstar) confirmed nine ratings and upgraded five ratings of six BXG Receivables Note Trust transactions.
The rating actions are based on the following analytical considerations:
The transaction assumptions consider DBRS Morningstar's baseline macroeconomic scenarios for rated sovereign economies, available in its commentary Baseline Macroeconomic Scenarios For Rated Sovereigns, published on September 8, 2021. These baseline macroeconomic scenarios replace DBRS Morningstar's moderate and adverse COVID-19 pandemic scenarios, which were first published in April 2020. The baseline macroeconomic scenarios reflect the view that, although COVID-19 remains a risk to the outlook, uncertainty around the macroeconomic effects of the pandemic has gradually receded. Current median forecasts considered in the baseline macroeconomic scenarios incorporate some risks associated with further outbreaks, but remain fairly positive on recovery prospects given expectations of continued fiscal and monetary policy support. The policy response to COVID-19 may nonetheless bring other risks to the forefront in coming months and years.
The collateral performance to date and DBRS Morningstar's assessment of future performance, including upward revisions to the expected cumulative net loss assumptions.
Although the hospitality industry is in recovery mode, it still has challenges ahead particularly around international air travel, entertainment, and dining in a coronavirus environment.
The transaction parties' capabilities with regard to origination, underwriting, and servicing.
The transaction's capital structure, and form and sufficiency of available credit enhancement.
The transaction's performance to date, with minimal defaults and losses.
ESG CONSIDERATIONS
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/373262.
Notes:
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (May 26, 2021), which can be found on dbrsmorningstar.com under Methodologies & Criteria.
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