DBRS Morningstar Rates SCF Funding LLC’s $145 million Senior Notes Due on Various Maturity Dates; Stable Trend

DBRS, Inc. (DBRS Morningstar) assigned a rating of BBB to SCF Funding LLC’s $18 million 7.77% Series M Senior Notes due November 16, 2026; $65 million 7.95% Series N Senior Notes due November 16, 2028; and $62 million 8.10% Series O Senior Notes due November 16, 2030. The trend on the Notes is Stable. The ratings benefit from a guarantee from Stonebriar Finance Holdings LLC (Stonebriar or the Company), and as a result are equalized to the Long-Term Issuer Rating of Stonebriar. Net proceeds from the issuance will be used to repay certain existing indebtedness and for general corporate purposes.

CREDIT RATING DRIVERS
Given the rating of the notes reflect a guarantee by Stonebriar Finance Holdings LLC, should the Long-Term Issuer rating of Stonebriar Finance Holdings, LLC be upgraded, the notes rating will be upgraded. Conversely, should the Long-Term Issuer rating of Stonebriar Finance Holdings LLC be downgraded, the notes rating will be downgraded.

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 [July 4, 2023] https://www.dbrsmorningstar.com/research/416784/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is the Global Methodology for Rating Non-Bank Financial Institutions Global Methodology for Rating Non-Bank Financial Institutions (September 2, 2022):
https://www.dbrsmorningstar.com/research/402314/global-methodology-for-rating-non-bank-financial-institutions. In addition, DBRS Morningstar uses the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings https://www.dbrsmorningstar.com/research/416784/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (July 4, 2023) in its consideration of ESG factors.

The following methodologies have also been applied
-- DBRS Morningstar Criteria: Guarantees and Other Forms of Support (March 28, 2023): https://www.dbrsmorningstar.com/research/411694/dbrs-morningstar-global-criteria-guarantees-and-otherforms-of-support .

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

The primary sources of information used for this credit rating include Morningstar Inc. and Company Documents. DBRS Morningstar considers the information available to it for the purposes of providing this credit rating was of satisfactory quality.

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.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar’s outlooks and credit ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com.

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