DBRS Morningstar Confirms Rating on the Series 1 Notes Issued by Cubitt Global LLC and Discloses the Initial Rating on the Series 2 Notes

DBRS, Inc. (DBRS Morningstar) confirmed the following ratings on the notes issued by Cubitt Global LLC:

-- Series 1 Notes at AA (sf)
-- Series 2 Notes at AA (sf)

DBRS Morningstar confirmed the rating on the Series 1 Notes and assigned a new rating of AA (sf) to the Series 2 Notes on June 7, 2021. Due to an administrative discrepancy, corresponding press releases were not issued for these rating actions. On December 9, 2021, DBRS Morningstar confirmed the ratings on the Series 1 and Series 2 Notes.

DBRS Morningstar considered the following factors in its analysis:

-- The transaction assumptions consider DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary “Baseline Macroeconomic Scenarios For Rated Sovereigns December 2021 Update,” published on December 9, 2021. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020. The baseline macroeconomic scenarios reflect the view that recent pandemic-related developments, particularly the new omicron variant with subsequent restrictions, combined with rising inflation pressures in some regions, may dampen near-term growth expectations in coming months. However, DBRS Morningstar expects the baseline projections will continue to point to an ongoing, gradual recovery.

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

-- The creditworthiness 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 concluded that the entity is an acceptable originator and servicer of trade receivables and includes 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.

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 Rating U.S. Structured Finance Transactions – Appendix V: Obligations Backed by Insurance Policy (Financial Guarantee) (October 20, 2021), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

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.

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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