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' performance has rebounded significantly as malls and other high-traffic venues have largely re-opened, uncertainty remains as to how they will fare due to their likely more prolonged recoveries than those of other restaurant brands, as well as a potential second wave of restaurant closures and COVID-related stress. We will review the ratings over the next 90 days, focusing on the near-term liquidity available for

...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' performance has rebounded significantly as malls and other high-traffic venues have largely re-opened, uncertainty remains as to how they will fare due to their likely more prolonged recoveries than those of other restaurant brands, as well as a potential second wave of restaurant closures and COVID-related stress. + We will review the ratings over the next 90 days, focusing on the near-term liquidity available for the transactions, the longer-term impact on DSCR based on our evolving view on the pace of recovery, and the severity and duration of the COVID-19 pandemic. NEW YORK (S&P Global Ratings) July 20, 2020--S&P...

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