KBRA Assigns Preliminary Ratings to Subway Funding LLC, Series 2024-3
3 Sep 2024 | New York
KBRA assigns preliminary ratings to Subway Funding LLC, Series 2024-3 (Subway 2024-3). Subway 2024-3 represents Subway Worldwide Inc.’s (Subway or the Company) third securitization following the establishment of the master trust in June 2024. In conjunction with the issuance of the Series 2024-3 Notes, KBRA anticipates affirming the ratings on the Issuer’s outstanding notes. The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2024-3 Notes.
Founded in 1965, Subway is the largest franchisor in the limited-service restaurant category in the United States by unit count and is known for its customizable sandwiches. As of June 25, 2024, the system is 100% franchised and the Company had approximately 19,843 domestic locations in 50 states and DC and approximately 16,000 non-U.S. locations in over 90 countries and territories, of which 14,635 locations are being contributed to the trust. As of the last twelve-month period ended June 30, 2024 (LTM Q2 2024), the company’s revenue-generating assets produced approximately $16.6 billion in system-wide sales. Subway 2024-3 marks the first inclusion of 14,365 non-U.S. locations into the Subway Funding LLC master trust, amounting to 42.4% of the system’s total store count.
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