KBRA Assigns Preliminary Ratings to Applebee's Funding LLC & IHOP Funding LLC Series 2025-1 Senior Secured Notes

KBRA assigns preliminary ratings to Applebee's Funding LLC and IHOP Funding LLC (Dine 2025-1), Series 2025-1 Class A-1 Notes and Class A-2 Notes, a whole business securitization (WBS). Dine 2025-1 represents the IHOP Funding LLC and Applebee’s Funding LLC’s (each, a Co-Issuer) sixth series issued by the master trust since 2014. In conjunction with the issuance of the Series 2025-1 Notes, KBRA anticipates affirming the ratings on the Co-Issuers’ outstanding notes. Proceeds from Series 2025-1 Notes will be used to repay outstanding amounts on the Series 2019-1 Class A-2-II Notes in full, repay the Series 2022-1 Class A-1 Notes, and pay transaction fees and expenses.

Dine Brands Global, Inc. (Dine Brands or the Company) is the Manager and operator of restaurants under the International House of Pancakes and Applebee's Grill & Bar brand. As of Q1 2025, the Dine Brands’ restaurant system (including non-securitized assets) was approximately 98% franchised with 3,522 restaurants across 50 states (including the District of Columbia) and 23 international markets. As of the last twelve months ending Q1 2025, the Company’s revenue-generating assets produced approximately $7.9 billion in system-wide sales. The securitization collateral includes the system’s domestic locations, totaling 3,172 restaurants, and is approximately 98% franchised.

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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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1009620

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