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KBRA Assigns Preliminary Ratings to Diamond Issuer LLC Secured Cellular Site Revenue Notes Series 2020-1

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes (the "Notes") issued by Diamond Issuer LLC Series 2020-1.

The Secured Cellular Site Revenue Notes, Series 2020-1 Class A Notes, Series 2020-1 Class B Notes, and the Series 2020-1 Class C Notes issued by Diamond Issuer LLC represent Diamond Communications LLC’s ("Diamond", the "Manager", or the "Company") third securitization. The two prior securitizations, Series 2017-1 and the Series 2018-1 Notes will remain outstanding on the Series 2020-1 closing date. The transaction structure is a master trust, and as such, the indenture permits the issuance of additional classes and series of notes. The Issuer is an indirect wholly owned subsidiary of Diamond Communication Holdings LLC.

In conjunction with the expected issuance of the Series 2020-1 Notes, KBRA anticipates affirming the ratings on the Issuer’s outstanding Series 2017-1 Notes and Series 2018-1 Notes at transaction close owing to the performance of both the underlying collateral, which is consistent with our rating stresses following the addition of the 2020-1 Notes.

On the Series 2020-1 Cut-Off Date, the Asset Entities owned interests in 847 Cellular Sites pursuant to 1,139 Tenant Leases. The portfolio has annualized run rate revenue of approximately $35.4 million and annualized run rate net cash flow $28.0 million.

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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 U.S. Information Disclosure Form 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 U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. 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 and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.

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Xilun Chen, Senior Director (Lead Analyst)
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