Press Release

DBRS Morningstar Confirms Ratings on Two Coinstar Funding, LLC ABS Transactions

Other
April 27, 2022

DBRS, Inc. (DBRS Morningstar) confirmed its ratings on the following classes of securities in two Coinstar Funding, LLC asset-backed securities (ABS) transactions as follows:

-- Coinstar Funding, LLC, Series 2017-1, Class A-1 VFN at BBB (sf)
-- Coinstar Funding, LLC, Series 2017-1, Class A-2 Notes at BBB (sf)
-- Coinstar Funding, LLC, Series 2018-1, Class A-2 Notes at BBB (sf)

The rating actions are based on the following analytical considerations:

-- The transaction analysis considers DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary “Baseline Macroeconomic Scenarios for Rated Sovereigns March 2022 Update,” published on March 24, 2022. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020. Despite several new or increasing risks, including the Russian invasion of Ukraine, rising inflation, and new coronavirus variants, the overall outlook for growth and employment in the United States remains relatively positive.

-- The transaction’s capital structure and current ratings are performing within expectations.

-- Debt service coverage ratios and leverage ratios remain in compliance as of the latest quarterly report.

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

-- The recovery in the transaction’s overall performance after headwinds brought about by COVID-19.

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 U.S. ABS General Ratings Methodology (December 2018), 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.

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

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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