DBRS Morningstar Confirms Provisional Ratings of FREED ABS Trust 2020-3FP

DBRS, Inc. (DBRS Morningstar) confirmed its provisional ratings on the following classes of notes (the Notes) to be issued by FREED ABS Trust 2020-3FP (the Issuer), originally assigned on July 16, 2020. The confirmations are in conjunction with DBRS Morningstar’s “Global Macroeconomic Scenarios: July Update” published on July 22, 2020:

-- $114,720,000 Class A Notes at A (high) (sf)
-- $44,680,000 Class B Notes at A (low) (sf)
-- $38,650,000 Class C Notes at BB (low) (sf)

The transaction’s assumptions consider DBRS Morningstar’s set of macroeconomic scenarios for select economies related to the Coronavirus Disease (COVID-19), available in its commentary “Global Macroeconomic Scenarios: July Update.” DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which were last updated on July 22, 2020, and are reflected in DBRS Morningstar’s rating analysis.

Despite the update to the moderate scenario, no changes were made to DBRS Morningstar’s assumptions for the transaction. DBRS Morningstar maintains its expected cumulative net loss assumption as it was based on various factors and considerations consistent with the revised macroeconomic assumptions put forth in the update to the moderate scenario.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at https://www.dbrsmorningstar.com/research/357792.

Notes:
All figures are in U.S dollars unless otherwise noted.

The principal methodology is Rating U.S. Structured Finance Transactions (November 6, 2019), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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