Morningstar DBRS Takes Credit Rating Actions on Six BXG Receivables Note Trust Transactions

DBRS, Inc. (Morningstar DBRS) confirmed 11 and upgraded five of its credit ratings of the 16 classes of securities notes in six BXG Receivables Note Trust Transactions.

The credit rating confirmations are based on the following analytical considerations:
-- One notch upgrades for Series 2017-A, 2018-A, and 2020-A that are highly seasoned and have adequate credit enhancement to support multiples commensurate with the recommended credit ratings.

-- The transaction’s capital structure, and form and sufficiency of available credit enhancement.

-- The transaction’s performance to date, with minimal cumulative net losses.

-- The transaction parties’ capabilities with regard to origination, underwriting, and servicing. While Bluegreen Vacations Corporation (Bluegreen) was acquired by Hilton Grand Vacations in November of 2023, Bluegreen continues to operate as the servicer. As such, Morningstar DBRS does not expect any issues from an operational perspective.

-- The transaction assumptions consider Morningstar DBRS’ baseline macroeconomic scenarios for rated sovereign economies, available in its commentary, “Baseline Macroeconomic Scenarios For Rated Sovereigns: December 2023 Update,” published on December 19, 2023. These baseline macroeconomic scenarios replace Morningstar DBRS’ moderate and adverse COVID-19 pandemic scenarios, which were first published in April 2020.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at (January 23, 2024); https://dbrs.morningstar.com/research/427030.

Notes:
The principal methodology applicable to the credit ratings is DBRS Morningstar Master U.S. ABS Surveillance (February 22 2024); https://dbrs.morningstar.com/research/428506.

Other methodologies referenced in these transactions are listed at the end of this press release.

The credit ratings were initiated at the request of the rated entity.

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

Morningstar DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with these credit 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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New York, NY 10005 USA
Tel. +1 212 806-3277

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

-- Operational Risk Assessment for U.S. ABS Servicers (February 22, 2024),
https://dbrs.morningstar.com/research/428505
-- Operational Risk Assessment for U.S. ABS Originators (February 22, 2024),
https://dbrs.morningstar.com/research/428504
-- Legal Criteria for U.S. Structured Finance (December 7, 2023),
https://dbrs.morningstar.com/research/425081
-- Rating U.S. Structured Finance Transactions (February 22, 2024),
https://dbrs.morningstar.com/research/428503
-- Rating U.S. Timeshare Loan Securitizations (May 3, 2021),
https://dbrs.morningstar.com/research/377879

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