DBRS Morningstar Assigns Rating to Cubitt Global LLC’s Series 1 Notes

DBRS, Inc. (DBRS Morningstar) assigned the following rating to the Series 1 Notes (the Notes) issued by Cubitt Global LLC:

-- GBP 100,000,000 Series 1 Notes at AA (sf)

RATING RATIONALE/DESCRIPTION
DBRS Morningstar considered the following factors in its analysis:

-- 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: December Update,” published on December 2, 2020. DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which have been regularly updated. The scenarios were last updated on December 2, 2020, and are reflected in DBRS Morningstar’s rating analysis. The assumptions consider the moderate macroeconomic scenario outlined in the commentary, with the moderate scenario serving as the primary anchor for current ratings. The moderate scenario factors in increasing success in containment during the first half of 2021, enabling the continued relaxation of restrictions.

-- The satisfactory insurance policy coverage of the principal of the Notes.

-- The credit worthiness of the insurance provider, Federal Insurance Company, which is deemed to be commensurate with the rating.

-- The full and timely payment of the Notes from the insurance proceeds upon worst-case default scenarios of the underlying receivables.

-- Structural protections that enforce a controlled wind down upon certain occurrences.

-- DBRS Morningstar’s operational review with regard to originations, underwriting, and servicing, which concludes that the entity is an acceptable originator and servicer of trade receivables with an acceptable backup servicer.

-- The legal structure and its consistency with DBRS Morningstar’s “Legal Criteria for U.S. Structured
Finance.”

DBRS Morningstar is rating to the Legal Final Maturity Date. The rating is based on the timely payment of interest and ultimate payment of principal.

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.

DBRS Morningstar notes that this press release was amended on February 11, 2021, to remove language that referenced EU and UK endorsements, which were inadvertently added on January 19, 2021.

Notes:
All figures are in British pound sterling unless otherwise noted.

The principal methodology is Rating U.S. Structured Finance Transactions – Appendix V: Obligations Backed by Insurance Policy (Financial Guarantee) (November 6, 2020), 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.

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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