Press Release

DBRS Morningstar Confirms Ratings on Vine 2020-1

Other
October 03, 2022

DBRS, Inc. (DBRS Morningstar) confirmed its ratings on the following classes of notes issued by Vine 2020-1:

-- Class A at A (sf)
-- Class B at BBB (sf)
-- Class C at BB (sf)

The rating actions 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 “Baseline Macroeconomic Scenarios For Rated Sovereigns - September 2022 Update,” published on September 19, 2022. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020.

-- Transaction capital structure, current rating, and form and sufficiency of available credit enhancement.

-- The ability of the transaction to withstand stressed cash flow assumptions and the Class A Notes repay timely interest on a quarterly basis while the Class B and C Notes repay ultimate interest on a quarterly basis and each class of notes repays ultimate principal by the final maturity date.

-- The credit quality of the collateral pool and historical performance as of June 2022, in addition to DBRS Morningstar's assessment of future performance.

-- The transaction parties’ capabilities in the film rights exploitation space.

-- The operational history of Village Roadshow Entertainment Group USA Inc. (VREG) and the strength of the overall company and its management team.

-- The assets supporting this transaction are a combination of the existing film library from VREG and the Virtual film library. The transaction benefits from perpetual revenue generated from the exploitation of the titles across various media platforms and merchandising.

-- Because this is a film library transaction, there is no production risk in the portfolios. All films have been released and are through their theatrical windows.

ENVIRONMENTAL, SOCIAL, 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 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/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (May 17, 2022).

Notes:
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (May 16, 2022), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

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.

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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