Morningstar DBRS Takes Credit Rating Actions on Three Westgate Resorts LLC Transactions

DBRS, Inc. (Morningstar DBRS) confirmed twelve credit ratings on three Westgate Resorts LLC transactions.

Credit rating rationale includes the key analytical considerations:

-- The transaction's capital structure and form and sufficiency of available credit enhancement (CE).

-- CE is in the form of overcollateralization, reserve accounts, and excess spread.

-- Westgate 2022-1 has amortized to a note factor of 21.59% and has a current cumulative net loss (CNL) to date of 17.00%. Losses have been tracking within the Morningstar DBRS' previously revised base case CNL expectation of 24.00%, available CE, inclusive of excess spread has grown across all tranches, sufficient to support the remaining CNL assumption at a multiple coverage commensurate with the credit ratings.

-- Westgate 2023-1 has amortized to a note factor of 60.64% and has a current CNL to date of 12.95%. Current CNL projections are tracking above Morningstar DBRS' initial base-case loss expectation of 22.00%. Consequently, the revised base-case loss expectation was increased to 24.00%. However, CE, inclusive of excess spread has grown across all tranches, sufficient to support the remaining CNL assumption at a multiple coverage commensurate with the credit ratings.

-- Westgate 2024-1 has amortized to a note factor of 78.70% and has a current CNL to date of 3.77%. Losses have been tracking within the Morningstar DBRS' base case CNL expectation of 19.95%, available CE, inclusive of excess spread has grown across all tranches, sufficient to support the remaining CNL assumption at a multiple coverage commensurate with the credit ratings.

-- The transaction parties' capabilities with respect to originating, underwriting, and servicing.

-- The Transaction assumptions consider Morningstar DBRS' baseline macroeconomic scenarios for rated sovereign economies, available in its commentary, " Baseline Macroeconomic Scenarios for Rated Sovereigns March 2025 Update," published on March 26, 2025. These baseline macroeconomic scenarios replace Morningstar DBRS' moderate and adverse coronavirus pandemic scenarios, which were first published in April 2020.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

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.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

There were no Environmental/Social/Governance factor(s) 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) https://dbrs.morningstar.com/research/437781.

Notes:
All figures are in US dollars unless otherwise noted.

The principal methodology applicable to the credit ratings is Morningstar DBRS Master U.S. ABS Surveillance (April 10, 2025) https://dbrs.morningstar.com/research/451793.

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 did not have 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.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-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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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 (March 26, 2025),
https://dbrs.morningstar.com/research/450709

-- Legal Criteria for U.S. Structured Finance (December 03, 2024),
https://dbrs.morningstar.com/research/444064

-- Rating U.S. Structured Finance Transactions (March 28, 2024),
https://dbrs.morningstar.com/research/449616

-- Rating U.S. Timeshare Loan Securitizations (August 6, 2024)
https://dbrs.morningstar.com/research/437573

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