DBRS Morningstar Confirms Credit Ratings on PACEWELL 5 LLC and PACEWELL 6 LLC

DBRS, Inc. (DBRS Morningstar) confirmed its credit ratings on the Notes issued by PACEWELL 5 LLC and PACEWELL 6 LLC as follows:

PACEWELL 5 LLC
-- Class A at AAA (sf)
-- Class B at AA (sf)
-- Class C at BBB (sf)

PACEWELL 6 LLC
-- Class A at AAA (sf)

CREDIT RATING RATIONALE
The credit rating confirmations 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: September 2023 Update,” published on September 28, 2023. 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 transaction capital structure, current rating, and sufficient credit enhancement level.

-- Credit enhancement is in the form of overcollateralization, a liquidity reserve account, and excess spread with senior notes benefiting from subordination of junior notes.

-- The value of the commercial properties that secure the underlying assessments relative to the outstanding balance of the assessments and the priority of the assessments being senior to a first-lien mortgage.

-- Collateral performance is within expectations with minimal delinquencies currently reported.

-- The transaction parties’ capabilities with regard to origination, underwriting, and servicing.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance (ESG) factors that had a significant or relevant effect on the credit analysis.

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/416784 (July 4, 2023).

Notes:
The principal methodology applicable to the credit rating is DBRS Morningstar Master U.S. ABS Surveillance (July 20, 2023), https://www.dbrsmorningstar.com/research/417414.

Other methodologies referenced in this transaction are listed at the end of this press release.

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.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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

DBRS, Inc.
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New York, NY 10005 USA
Tel. +1 212 806-3277

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

-- Operational Risk Assessment for U.S. ABS Servicers (July 20, 2023),
https://www.dbrsmorningstar.com/research/417415
-- Operational Risk Assessment for U.S. ABS Originators (July 20, 2023),
https://www.dbrsmorningstar.com/research/417416
-- Legal Criteria for U.S. Structured Finance (December 7, 2022),
https://www.dbrsmorningstar.com/research/407008
-- Rating U.S. Structured Finance Transactions (September 25, 2023),
https://www.dbrsmorningstar.com/research/421053
-- Rating U.S. Property Assessed Clean Energy (PACE) Securitizations (May 24, 2022),
https://www.dbrsmorningstar.com/research/397234

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