DBRS Confirms Ratings of Village Roadshow Films (BVI) Limited and Village Roadshow Films North America Inc.

DBRS, Inc. (DBRS) confirmed Village Roadshow Films (BVI) Limited’s Senior Revolving Facility - Foreign Tranche and Subordinated Term Loan Facility - Foreign Tranche at A (sf) and BBB (sf), respectively, and Village Roadshow Films North America Inc.’s Senior Revolving Facility - Domestic Tranche and Subordinated Term Loan Facility - Domestic Tranche at A (sf) and BBB (sf), respectively (collectively, the Facilities). Performance trends currently provide credit enhancement levels that are sufficient to cover DBRS’s stresses at their current respective rating levels. However, some films in the portfolio have exhibited weaker-than-expected revenue generation. This weaker-than-expected performance was addressed in an amendment to the Facilities, which closed on October 5, 2017 (the Amendment).

DBRS will continue to monitor performance trends relative to the Amendment in order to determine whether credit enhancement remains sufficient to cover DBRS’s stresses at the Facilities’ current respective rating levels.

The ratings are based on DBRS’s review of the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to origination, underwriting and servicing.
-- The credit quality of the collateral pool and historical performance.

Notes:
The principal methodology is DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

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