DB Master Finance ratings assigned for 2026 notes refinancing

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DB Master Finance 2026 notes refinancing

Highlights

KBRA assigned ratings to DB Master Finance LLC’s Series 2026-1 Class A Notes, citing sufficient credit enhancement and transaction cash flows post-issuance.
The Series 2021-1 Class A-2-I Notes are refinanced, outstanding principal on Series 2019-1 and Series 2023-1 Class A-1 Notes is scheduled for paydown, and respective ratings are withdrawn.
Securitization is backed by $16.8 billion in annual sales from over 22,100 Dunkin’ franchise units, with 82% of revenue from the U.S. as of December 28, 2025.

Rating actions tied to 2026 issuance

As reported by Kroll Bond Rating Agency, KBRA assigned ratings to DB Master Finance LLC’s Series 2026-1 Class A-1, Class A-2-I and Class A-2-II Notes, concluding that existing credit enhancement and transaction cash flows are sufficient to support the ratings after the new issuance.

The new notes are part of a whole business securitization. In connection with the Series 2026-1 issuance, the Series 2021-1 Class A-2-I Notes are being refinanced, while the outstanding principal balance on the Series 2019-1 Class A-1 Notes and Series 2023-1 Class A-1 Notes is expected to be paid down.

KBRA is also withdrawing its ratings on the issuer’s Series 2021 Class A-2-I Notes and Series 2023-1 Class A-1 Notes. At the same time, it is affirming the ratings on the Series 2021-1 Class A-2-II Notes, Series 2021-1 Class A-2-III Notes, Series 2025-1 Class A-2-I Notes and Series 2025-1 Class A-2-II Notes, which together with the new Series 2026-1 Class A Notes rank pari passu.

Dunkin’ franchise cash flows support structure

KBRA said the securitization is backed by royalty payments from 100% franchised locations in the Dunkin’ Brands restaurant system, providing the cash flow base for the notes.

As of December 28, 2025, covering the fourth quarter of 2025, the system includes more than 22,100 units across 48 U.S. states, the District of Columbia, Puerto Rico and 53 international markets. The network generates about $16.8 billion in annual systemwide sales, with roughly 82% coming from the U.S. and the remaining 18% from international markets.

The rating actions indicate continued lender reliance on the scale and geographic diversification of Dunkin’ franchise revenues as DB Master Finance adjusts its debt mix through refinancing and note paydowns.

Pagaya’s RPM 2026-4 auto loan ABS transaction brought $574.70 million of notes to market through two affiliated trusts, structured as a fully prefunded deal with initial support coming from a prefunding account. Our earlier coverage noted that KBRA assigned preliminary ratings across 16 note classes and outlined the credit enhancement package—overcollateralization, subordination, funded reserve accounts, and excess spread—based on its review of static pool data, platform operations, and oversight of key counterparties.

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