KBRA assigns a preliminary rating to the Series 2023-1 Class A-2 Notes (the Series 2023-1 Notes) from Applebee's Funding LLC & IHOP Funding LLC, (the Co-Issuers) a whole business securitization. Concurrently, the rating of BBB (sf) for the Series 2022-1, Class A-1 Notes is being published. The rating was initially assigned on August 12, 2022, on an unpublished basis, and since that time has remained stable.

The Series 2023-1 Notes represent Dine Brands Global, Inc.’s (Dine Brands or the Company) fifth securitization from its master trust, of which approximately $1.6 billion is currently outstanding, from which approximately $919.0 million is anticipated to be outstanding at the close of this series. The outstanding Series 2019-1 Class A-2-II Notes, Series 2022-1 Class A-1 Notes, and the Series 2023-1 Notes (together, the Class A Notes, and the Notes) share in the same collateral pool. KBRA re-analyzed the prior series rated by KBRA in conjunction with the issuance of the Series 2023-1 Notes, and anticipates affirming the outstanding rating on the Series 2022 Class A-1 Notes as of the Series 2023-1 Notes’ closing date.

Founded in 1980 and 1958, respectively, Applebee's Grill & Bar (Applebee's) and the International House of Pancakes (IHOP) together have 3,459 restaurants, mainly in the U.S. as of December 31, 2022. The system also includes locations outside of the U.S., including Canada, Mexico, Latin America, and the Middle East. For the twelve months ending (LTM) December 31, 2022, the Company generated global system-wide sales (SWS) of approximately $7.6 billion and is approximately 100% franchised.

Dine Brands and certain of its affiliates have contributed substantially all of their domestic revenue-generating assets to Applebee's Funding LLC and IHOP Funding LLC (the Co-Issuers) and their subsidiaries. Similar to other master trust WBS transactions, the Issuer can offer subsequent series of notes if certain requirements in the transaction documents are met. The transaction collateral includes existing and future domestic area development and franchise agreements, royalties from company-operated locations, certain owned properties and lease payments, certain franchise note and equipment lease payments, profits from distribution arrangements, and intellectual property. The proceeds from the offered notes will be used to fully pay down the Series 2019-1 Class A-2-I Notes, pay fees and expenses, and general corporate purposes.

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Related Publications

• Whole Business Securitization ABS Global Rating Methodology
• 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.

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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.

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