Morningstar DBRS Assigns Credit Rating to the Fixed Rate Asset Backed Notes Series 2024-B1 Issued by JG Wentworth LIX, LLC

DBRS, Inc. (Morningstar DBRS) assigned a credit rating of A (sf) to the $80,000,000 Fixed Rate Asset Backed Notes, Series 2024-B1 (the Notes) issued by J.G. Wentworth LIX, LLC.

CREDIT RATING RATIONALE/DESCRIPTION
The credit ratings are based on Morningstar DBRS' review of 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 December 2024 Update," published on December 19, 2024. These baseline macroeconomic scenarios replaced Morningstar DBRS' moderate and adverse coronavirus pandemic scenarios, which were first published in April 2020.
-- Transaction capital structure and form and sufficiency of available credit enhancement. The initial hard credit enhancement for the Notes is 9.08%, provided through the Issuer Invested Amount (3.50%) and an amount on deposit in the cash reserve account (5.58%).
-- The ability of the transaction to withstand stresses in the cash flow scenarios and repay investors in accordance with the terms of the transaction. For this transaction, the credit ratings address timely payment of interest on a monthly basis and repayment of principal by the Legal Final Maturity Date.
-- J.G. Wentworth, LLC's (JGW) is an established originator and servicer of structured settlements, annuity contracts, and lottery receivables. Over the years, JGW has sponsored and acted as the servicer of multiple ABS transactions secured by such collateral. Morningstar DBRS conducted an operational review of JGW and determined it to be an acceptable originator and servicer of structured settlements, annuity, and lottery receivables
.-- Vervent Inc. as a back-up servicer, which could, if needed, could assume primary servicing.
-- The transaction's support from an established structure and consistency with Morningstar DBRS' "Legal Criteria for U.S. Structured Finance." Legal opinions covering, among other things, true sale and nonconsolidation were also provided.

Morningstar DBRS' credit rating on the Notes addresses the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. For the security listed in the table above, the associated financial obligations are the Interest Distribution Amount and Aggregate Principal Balance.

Morningstar DBRS' credit rating does not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction documents that are not financial obligations. For example, the interest on the unpaid Interest Distribution Amount for the Notes, any indemnities due to the Noteholders, and any reimbursement for all costs and expenses incurred if the original credit rating is not maintained.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

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 Factors in Credit Ratings (August 13, 2024) at https://dbrs.morningstar.com/research/437781.

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

The principal methodology applicable to the credit rating is Rating U.S. Structured Settlements Asset-Backed Securitizations (October 28, 2024) https://dbrs.morningstar.com/research/441881.

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.

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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 Originators and Servicers (December 5, 2024),
https://dbrs.morningstar.com/research/444162

Legal Criteria for U.S. Structured Finance (December 3, 2024),
https://dbrs.morningstar.com/research/444064

Rating U.S. Structured Finance Transactions (November 18, 2024),
https://dbrs.morningstar.com/research/443136

Interest Rate Stresses for U.S. Structured Finance Transactions (February 26, 2024),
https://dbrs.morningstar.com/research/428623

Global Methodology for Rating CLOs and Corporate Global Methodology for Rating CLOs and Corporate CDOs and CLO Insight Model v1.0.1.4 (November 19, 2024)
https://dbrs.morningstar.com/research/443207

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