DBRS Inc. recently upgraded seven Westgate Resorts bond ratings across three outstanding asset-backed bond issuances.
These upgrades represent the first time that Westgate’s asset-backed bonds have carried any ratings above “A” and the first time that Westgate has achieved a rating of “AAA,” which is the highest rating possible in structured finance.
These upgrades include:
Westgate Resorts 2014-1 LLC
- Class A Notes: Upgraded from A to AAA
- Class B Notes: Upgraded from BBB to A
- Class C Notes: Upgraded from BB to BBB
Westgate Resorts 2015-1 LLC
- Class A Notes: Upgraded from A to AAA
- Class B Notes: Upgraded from BBB to AA
Westgate Resorts 2015-2 LLC
- Class A Notes: Upgraded from A to AAA
- Class B Notes: Upgraded from BBB to AA
Westgate has issued nearly $3.2 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 the largest privately held timeshare company 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 with 28 themed destination resorts nationwide, featuring more than 13,000 luxury villas and hotel rooms in popular vacation destinations, including Orlando; Park City, Utah; Las Vegas; Myrtle Beach, SC; Miami Beach, FL; Daytona Beach, FL; Cocoa Beach, FL; River Ranch, FL; Gatlinburg, TN; Williamsburg, VA; Mesa, AZ; Branson, MO; and Tunica, MS. Most Westgate resorts feature a variety of unique restaurant, retail and spa concepts, including 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.
