DBRS Assigns Provisional Ratings to Westgate Resorts 2016-1 LLC

DBRS, Inc. (DBRS) has today assigned provisional ratings to the following classes of notes issued by Westgate Resorts 2016-1 LLC:

-- Timeshare Collateralized Notes, Series 2016-1, Class A rated A (sf)
-- Timeshare Collateralized Notes, Series 2016-1, Class B rated BBB (sf)

The provisional ratings are based on a review by DBRS of the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the rating addresses the payment of timely interest on a monthly basis and principal by the final scheduled payment date.
-- Westgate Resorts, Ltd.’s (Westgate) operating history and its capabilities with regard to developing and managing timeshare resorts, as well as the origination, underwriting and servicing of Timeshare Loans.
-- The credit quality of the collateral and the consistent performance of Westgate’s timeshare loans portfolio.
-- The legal structure and presence of legal opinions address the true sale of the assets to the Issuer, the non-consolidation of each of the depositor and the Issuer with Westgate, and ensure that the Issuer has a valid first-priority security interest in the assets and the consistency with the DBRS Legal Criteria for U.S. Structured Finance methodology.

Notes:
The applicable methodology is Rating U.S. Timeshare Loan Securitizations, which can be found on our website under Methodologies.

The full report providing additional analytical detail is available by clicking on the link or by contacting us at info@dbrs.com.

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

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