ORLANDO, Fla.--(BUSINESS WIRE)--DBRS Inc. recently upgraded six Westgate Resorts bond ratings across three outstanding asset-backed bond issuances. All of these issuances now carry a rating of “AAA” which is the highest rating possible in structured finance.
These upgrades include:
Westgate Resorts 2016-1 LLC
- Class A Notes: Upgraded from AA(low)(sf) to AAA(sf)
- Class B Notes: Upgraded from BBB(sf) to A(sf)
Westgate Resorts 2017-1 LLC
- Class A Notes: Upgraded from AA(low)(sf) to AAA(sf)
- Class B Notes: Upgraded from BBB(sf) to A(sf)
Westgate Resorts 2018-1 LLC
- Class A Notes: Confirmed AAA(sf)
- Class B Notes: Upgraded from A(sf) to AA (low)(sf)
- Class C Notes: Upgraded from BBB(sf) to BBB (high)(sf)
Westgate has issued $3.23 billion of asset-backed bonds since 1992 with no losses ever realized by its investors. Westgate’s deals include a fast-pay structure that allocates all available cash flow other than servicing fees to pay down the bonds, resulting in short average lives and an alignment of interest with investors.
“We enjoy our relationship with DBRS and work very hard to provide our investor base with a high-quality investment,” says Tom Dugan, Chief Financial Officer, Westgate Resorts. “We believe that these upgrades confirm the performance of our bonds and Westgate’s capabilities as a servicer. Our proven access to the U.S. asset-backed markets complements our long-time banking relationships and provides funding for both Westgate’s owners and the company’s operating needs.”
About Westgate Resorts
Westgate Resorts is one of the largest privately held timeshare companies in the world and one of the largest resort developers in the United States. Founded in 1982 by David Siegel, the company is headquartered in Orlando, Florida with 8 Orlando hotel resorts and 24 themed destination resorts nationwide, featuring more than 14,000 luxury villas and hotel rooms in popular vacation destinations throughout the United States, including Orlando, Miami, Daytona, River Ranch and Cocoa Beach, Florida; New York City, New York; Park City, Utah; Las Vegas, Nevada; Myrtle Beach, South Carolina; Gatlinburg, Tennessee; Williamsburg, Virginia; Mesa, Arizona; Branson, Missouri; and Tunica, Mississippi. Most Westgate resorts locations feature a variety of unique restaurant, retail and spa concepts, including Villa Italiano Chophouse, Drafts Sports Bar & Grill, Westgate Smokehouse Grill, Edge Steakhouse, Westgate Marketplace & Deli, and Serenity Spa by Westgate. For more information about Westgate Resorts, please visit www.westgateresorts.com.
About DBRS
On July 2, 2019, Morningstar, Inc. completed its acquisition of DBRS. Combining DBRS' strong market presence in Canada, Europe, and the U.S. with Morningstar Credit Ratings' U.S. footprint has expanded global asset class coverage and provided investors with an enhanced platform featuring thought leadership, analysis and research. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together as DBRS Morningstar, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. Visit us at learn/dbrsmorningstar.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities law. Unless so registered, the Notes may not be offered or sold in the United States, except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.
