DBRS Morningstar Places 16 Classes from Three Transactions Under Review with Negative Implications

DBRS, Inc. (DBRS Morningstar) placed the following classes Under Review with Negative Implications:

-- Cubitt Global LLC, Series 1 Notes rated AA (sf)
-- Cubitt Global LLC, Series 2 Notes rated AA (sf)
-- Cubitt Global LLC, Series 3 Notes rated AA (sf)
-- Cubitt Global LLC, Series 4 Notes rated AA (sf)
-- Humboldt Americas, LLC, Series 2 Note rated A (sf)
-- Humboldt Americas, LLC, Series 5 Note rated A (sf)
-- Humboldt Americas, LLC, Series 6 Note rated A (sf)
-- Humboldt Americas, LLC, Series 7 Note rated A (sf)
-- Humboldt Americas, LLC, Series 8 Note rated A (sf)
-- NATF America LLC, Series 1 Notes rated AA (sf)
-- NATF America LLC, Series 2 Notes rated AA (sf)
-- NATF America LLC, Series 3 Notes rated AA (sf)
-- NATF America LLC, Series 4 Notes rated AA (sf)
-- NATF America LLC, Series 5 Notes rated AA (sf)
-- NATF America LLC, Series 6 Notes rated AA (sf)
-- NATF America LLC, Series 7 Notes rated AA (sf)

The rating actions are based on the following analytical considerations:

-- Ratings have been placed Under Review with Negative Implications pending resolution of the request for comments on proposed updates to Appendix V: Obligations Backed by Insurance Policy (Financial Guarantee) in the “Rating U.S. Structured Finance Transactions” methodology, which may, upon the close of the Request for Comment period, supersede the version published on October 20, 2021. This appendix to the methodology presents the criteria for which obligations backed by insurance policy (financial guarantee) in North America are assigned and/or monitored.

-- In the proposed update to the methodology, DBRS Morningstar retains the ability to flow through, on a one-to-one basis, an entity’s DBRS Morningstar credit rating in the assignment and monitoring of a structured finance security and removes the use of an internal assessment. DBRS Morningstar deems the update to be material. The rationale for the material change is to align DBRS Morningstar’s practice to flow through ratings across jurisdictions. Outstanding DBRS Morningstar insured obligation credit ratings are likely to be affected if (1) DBRS Morningstar’s credit ratings on the underlying entities differ from the existing internal assessment or (2) DBRS Morningstar does not maintain a credit rating on an underlying entity.

-- The Under Review status is expected to be resolved upon the resolution the request for comment period.

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 not 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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