DBRS Morningstar Confirms Ratings on GCI Funding I LLC, Fixed Rate Asset Backed Notes, Series 2020-1 and Series 2021-1

DBRS, Inc. (DBRS Morningstar) confirms ratings on both series (2020-1 and 2021-1) of fixed rate asset backed notes issued by GCI Funding I LLC.

The rating confirmations are based on the following analytical considerations:

--The transaction assumptions consider DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary titled “Baseline Macroeconomic Scenarios For Rated Sovereigns,” published on September 8, 2021. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020. The baseline macroeconomic scenarios reflect the view that, although the pandemic remains a risk to the outlook, uncertainty around the macroeconomic effects of the pandemic has gradually receded. Current median forecasts considered in the baseline macroeconomic scenarios incorporate some risks associated with further outbreaks, but remain fairly positive on recovery prospects given expectations of continued fiscal and monetary policy support. The policy response to the coronavirus may nonetheless bring other risks to the forefront in coming months and years. DBRS Morningstar has not been and is not currently making any adjustments for the effects of Covid-19 for this asset class.

-- The credit quality of the collateral pool and performance to date. Both series continue to perform within expectations, and no performance-based triggers are in effect.

-- After rebounding in the middle of 2020, the demand for containers remains strong.

-- Container shipping liners' recent financial performance has been strong, with significantly better results recorded in 2020 than originally feared amid the peak of the global coronavirus pandemic, and the outlook for 2021 and 2022 is even stronger. While such outstanding performance may not be sustained long term, it bodes well for the near- to medium-term credit performance outlook for container lessors.

-- The structural features of the master trust requires the Class A Notes and Class B Notes to enter into an accelerated principal amortization if certain performance triggers are tripped or if credit enhancement deteriorates.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Notes:
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (May 26, 2021), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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