Morningstar DBRS Takes Credit Rating Actions on Cubitt Global, LLC

DBRS, Inc. (Morningstar DBRS) placed 5 credit ratings Under Review with Negative Implications from Cubitt Global, LLC (the Transaction).

The credit rating actions are based on the following analytical considerations:

-- On April 24, 2024, Morningstar DBRS was provided a Notice of an Event of Default for Cubitt Global, LLC pursuant to Section 13.2 of the Indenture dated January 29, 2021. Several key events of default including failure to pay a partial payment of the outstanding principal amount, failure to provide audited consolidated financial statements and transaction specific settlement reports, acquiring ineligible receivables, failure to ensure all receivables are insured receivables, failure to purchase eligible receivables, and issuer commingling of funds with affiliates.

-- Based on the notification received on the of the Events of Default, Morningstar DBRS has placed all outstanding notes for the Transaction Under Review with Negative Implications to obtain further information, such as on the eligibility and insured status of the receivables, the status of the audited consolidated financial reports, the status of the settlement reports, and assess possible operational issues related to non-payment, in order to determine the impact on the outstanding notes for the Transactions.

-- The transaction assumptions consider Morningstar DBRS' baseline macroeconomic scenarios for rated sovereign economies, available in its commentary, "Baseline Macroeconomic Scenarios for Rated Sovereigns March 2024 Update," published on March 27, 2024. These baseline macroeconomic scenarios replace Morningstar DBRS' moderate and adverse coronavirus 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 https://dbrs.morningstar.com/research/427030 (January 23, 2024).

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

Other methodologies referenced in this transaction 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, management, 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 (March 21, 2024),
https://dbrs.morningstar.com/research/430003
-- Operational Risk Assessment for U.S. ABS Originators (March 21, 2024),
https://dbrs.morningstar.com/research/430004
-- Interest Rate Stresses for U.S. Structured Finance Transactions (February 26, 2024),
https://dbrs.morningstar.com/research/428623
-- Legal Criteria for U.S. Structured Finance (April 15, 2024),
https://dbrs.morningstar.com/research/431205
-- Rating U.S. Structured Finance Transactions (April 15, 2024),
https://dbrs.morningstar.com/research/431204

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.