Morningstar DBRS Confirms Credit Rating on MP 2023 LLC

DBRS, Inc. (Morningstar DBRS) confirmed its credit rating of A (sf) on the Series 2023-1 Class A Notes issued by MP 2023 LLC.

The rating confirmation is based on the following analytical considerations:

-- 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.

-- The credit quality of the collateral pool and historical performance.

-- The transaction continues to perform well within expectations, benefiting from overcollateralization and a reserve account.

-- No cash trap trigger, rapid amortization event, or early amortization event is in effect.

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

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

Morningstar DBRS materially deviated from its principal methodology ("Rating Marine Container Securitizations") when determining the initial rating assigned to the Series 2023-1 Class A Secured Vessel Notes by adjusting the following cash flow assumptions:
-- Recessions
-- Long-Term Lease Per Diem Rate Haircut
-- Long-Term Lease Re-lease Term
-- Haircut to Long-Term Lease Per Diem Rates at Renewal
-- Residual Realization Haircut
-- Direct Operating Expenses

These adjustments and the resulting material deviation were warranted given the analysis of historical data, relative asset cash flow, and value stability based on the limited supply of inland marine vessels with steady demand and the unique regulatory environment.

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

The principal methodology applicable to the 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 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.

Morningstar DBRS 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.

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

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA
Tel. +1 212 806-3277

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

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

Rating Marine Container Securitization (January 30, 2024)
https://dbrs.morningstar.com/research/427275

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.