Ratings On FOCUS Brands Funding LLC Series 2017-1 And 2018-1 Notes Remain On CreditWatch Negative

OVERVIEW Our ratings on FOCUS Brands Funding LLC series 2017-1 and 2018-1 notes remain on CreditWatch negative, where they were placed on April 21, 2020. The note issuances are securitizations of FOCUS' whole business, which is backed by payments from Auntie Anne's, Cinnabon, Moe's Southwest Grill, Schlotzsky's, Carvel, Jamba, and McAlister's Deli stores. Although the brands' systemwide sales have rebounded significantly since late March, with over 85% of global stores reopened, it remains unclear how many of the remaining temporarily-closed stores will be able to re-open and how the brands' average unit volumes will evolve in the current economic environment. We will review the ratings over the next 90 days, focusing on the level of permanent store closures, changes in

...OVERVIEW + Our ratings on FOCUS Brands Funding LLC series 2017-1 and 2018-1 notes remain on CreditWatch negative, where they were placed on April 21, 2020. + The note issuances are securitizations of FOCUS' whole business, which is backed by payments from Auntie Anne's, Cinnabon, Moe's Southwest Grill, Schlotzsky's, Carvel, Jamba, and McAlister's Deli stores. + Although the brands' systemwide sales have rebounded significantly since late March, with over 85% of global stores reopened, it remains unclear how many of the remaining temporarily-closed stores will be able to re-open and how the brands' average unit volumes will evolve in the current economic environment. + We will review the ratings over the next 90 days, focusing on the level of permanent store closures, changes in average unit volume per brand, and their impact on the transaction's DSCR in the context of our evolving view on the severity and duration of the COVID-19 pandemic....

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