Morningstar DBRS Assigns Provisional Credit Ratings to Sunbit Asset Securitization Trust 2025-1

DBRS, Inc. (Morningstar DBRS) assigned provisional credit ratings to the following notes to be issued by Sunbit Asset Securitization Trust 2025-1 (SNBT 2025-1):

--$164,580,000 Class A Notes at (P) AA (sf)
--$13,920,000 Class B Notes at (P) A (sf)
--$5,160,000 Class C Notes at (P) BBB (sf)
--$16,340,000 Class D Notes at (P) BB (sf)

CREDIT RATING RATIONALE/DESCRIPTION
Morningstar DBRS based its credit ratings on its review of the following analytical considerations:
(1) Consideration of 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 COVID-19 pandemic scenarios, which were first published in April 2020.

(2) The transaction's capital structure and form and sufficiency of available credit enhancement.
-- Credit enhancement is in the form of OC, subordination, amounts held in the reserve fund, and excess spread. Credit enhancement levels are sufficient to support Morningstar DBRS' stressed assumptions under all stress scenarios.

(3) The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the credit ratings address the timely payment of interest on a monthly basis and principal by the legal final maturity date.

(4) Sunbit's capabilities with regard to originations, underwriting, and servicing.
-- Morningstar DBRS performed an operational review of Sunbit and, as a result, considers the entity to be an acceptable originator and servicer of consumer loans.
-- Sunbit's senior management team has considerable experience and a successful track record within the banking and technology industry.
-- Nelnet Servicing, LLC will serve as the Backup Servicer.

(5) Inclusion of structural elements featured in the transaction such as the following:
-- Eligibility criteria for receivables that are permissible in the transaction.
-- Concentration limits designed to maintain a consistent profile of the receivables in the pool.
-- Performance-based Amortization Events that, when breached, will end the Revolving Period and begin amortization.

(6) The Morningstar DBRS base-case cumulative net loss (CNL) assumption for SNBT 2025-1 is 7.47% and is based off a worst-case pool assessment of the Eligible Receivables and the Excess Concentration Amount criteria. Charge-off rates range widely based upon Sunbit Score, tenor and merchant verticals. Non-interest-bearing loans will be Eligible Receivables in the SNBT 2025-1 transaction and limited to 23.00% of the Pool Balance.
-- Morningstar DBRS used proxy analysis in its development of an expected loss, given the Company's limited performance history.
-- For the SNBT 2025-1 transaction, Morningstar DBRS assumed an overall recovery rate of 10.00% based on historical recovery performance provided by the Company.

(7) Sunbit's current partnership with TAB Bank, Inc. (TAB), a Utah state-chartered bank, which serves as the Originator of the receivables for the trust. The receivables originated by TAB are subject to the trust's Eligible Receivables criteria, which has state specific limitations on the Contract Rate.
-- Loans originated by TAB Bank have a Contract Rate less than or equal to 36.00%.

(8) All collections are made into the Servicer Account in which Wilmington Trust, National Association (WTNA) has a security interest under a Deposit Account Control Agreement. WTNA as Indenture Trustee can obtain funds that belong to SUNBT 2025-1 in the case of a bankruptcy or Servicer Termination Event.

(9) The legal structure and presence of legal opinions that will address the true sale of the assets from the Seller to the Depositor, the non-consolidation of the special-purpose vehicle with the Seller, that the Indenture Trustee has a valid first-priority security interest in the assets, and the expected consistency with Morningstar DBRS' Legal Criteria for U.S. Structured Finance.

Morningstar DBRS' credit rating on the Class A Notes, Class B Notes, Class C Notes, and Class D Notes addresses the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are the Interest Distribution Amount and the related Note Balance.

Morningstar DBRS' credit rating does not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations. For example, the associated contractual payment obligation that is not a financial obligation is the portion of Note Interest Shortfall attributable to interest on unpaid note interest for each of the rated notes.

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 (May 16, 2025) https://dbrs.morningstar.com/research/454196.

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

The principal methodology applicable to the credit ratings is

Rating U.S. Structured Finance Transactions (Appendix I: U.S. Consumer Loan ABS Transactions) (March 10, 2025) https://dbrs.morningstar.com/research/449616.

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.

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

A provisional credit rating is not a final credit rating with respect to the above-mentioned securities and may change or be different than the final credit rating assigned or may be discontinued. The assignment of the final credit ratings on the above-mentioned securities are subject to receipt by Morningstar DBRS of all data and/or information and final documentation that Morningstar DBRS deems necessary to finalize the 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.

Global Methodology for Rating CLOs and Corporate CDOs and the CLO Insight Model v1.0.1.4 (July 9, 2025)
https://dbrs.morningstar.com/research/458009

Global Methodology for Rating Trade Receivable Securitizations (March 28, 2025)
https://dbrs.morningstar.com/research/450833

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 3, 2025)
https://dbrs.morningstar.com/research/444064

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