KBRA assigns a preliminary rating to one class of notes from NBC Funding LLC, Series 2024-1 (NBC 2024-1 or Series 2024-1 Notes). In conjunction with the issuance of NBC 2024-1, the NBC 2023-1 A-1-VFN Notes are expected to be refinanced at which time KBRA will withdraw the rating. At that time, KBRA also anticipates affirming the ratings on the Issuer’s outstanding Series 2021-1 Class A-1-VFN Notes and the Series 2021-1 Class A-1-LR Notes, Series 2021-1 A-2 Notes, and the Series 2021-1 B Notes (the Existing Notes and, together with the Series 2024-1 Notes, the Notes). The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2024-1 Notes.

Cash flows into the transaction are primarily top-line payments from franchise locations and related distribution profit. These top-line payments include incoming securitized collections from both franchise royalty revenues and the Company's product distribution profits. The remaining collections mostly consist of profits from company-operated locations and other fees and revenues.

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Related Publications

• NBC Funding LLC, Series 2023-1 Rating Report
• NBC Funding LLC Surveillance Report (July 2023)
• NBC Funding LLC, Series 2021-1 New Issue Report

Methodologies

• ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004212

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