DBRS Morningstar Takes Rating Actions on Two Westgate Resorts LLC Transactions

DBRS, Inc. (DBRS Morningstar) confirmed five and upgraded two credit ratings from Westgate Resorts 2020-1 LLC and Westgate Resorts 2022-1 LLC as follows:

-- Timeshare Collateralized Notes, Series 2020-1, Class A confirmed at AAA (sf)
-- Timeshare Collateralized Notes, Series 2020-1, Class B upgraded to AA (sf) from A (high) (sf)
-- Timeshare Collateralized Notes, Series 2020-1, Class C upgraded to A (sf) from BBB (sf)
-- Timeshare Collateralized Notes, Series 2022-1, Class A confirmed at AAA (sf)
-- Timeshare Collateralized Notes, Series 2022-1, Class B confirmed at A (sf)
-- Timeshare Collateralized Notes, Series 2022-1, Class C confirmed at BBB (sf)
-- Timeshare Collateralized Notes, Series 2022-1, Class D confirmed at BB (sf)

The credit rating actions 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 COVID-19 pandemic scenarios, which were first published in April 2020.

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

-- The transactions’ capital structures, and form and sufficiency of available credit enhancement.

-- The transactions’ performance to date, with losses coming within DBRS Morningstar's initial expectations.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance 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 ratings is “DBRS Morningstar Master U.S. ABS Surveillance” (July 20, 2023; https://www.dbrsmorningstar.com/research/417414).

Other methodologies referenced in these transactions 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 ratings were initiated at the request of the rated entities.

The rated entities or their related entities did participate in the rating process for these credit rating actions.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entities or their related entities in connection with these rating actions.

These are solicited credit ratings.

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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The credit rating methodologies used in the analysis of these transactions 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. Timeshare Loan Securitizations (May 3, 2021)
https://www.dbrsmorningstar.com/research/377879/rating-us-timeshare-loan-securitizations

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