KBRA Assigns Preliminary Rating to NBC Funding LLC, Series 2024-1
7 May 2024 | New York
KBRA assigns a preliminary rating to one class of notes from NBC Funding LLC, Series 2024-1 (NBC 2024-1 or Series 2024-1 Notes). In conjunction with the issuance of NBC 2024-1, the NBC 2023-1 A-1-VFN Notes are expected to be refinanced at which time KBRA will withdraw the rating. At that time, KBRA also anticipates affirming the ratings on the Issuer’s outstanding Series 2021-1 Class A-1-VFN Notes and the Series 2021-1 Class A-1-LR Notes, Series 2021-1 A-2 Notes, and the Series 2021-1 B Notes (the Existing Notes and, together with the Series 2024-1 Notes, the Notes). The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2024-1 Notes.
Cash flows into the transaction are primarily top-line payments from franchise locations and related distribution profit. These top-line payments include incoming securitized collections from both franchise royalty revenues and the Company's product distribution profits. The remaining collections mostly consist of profits from company-operated locations and other fees and revenues.
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