DBRS Morningstar Finalizes Provisional Ratings on ARM Master Trust, LLC, Series 2021-T1 and Series 2021-T2

DBRS, Inc. (DBRS Morningstar) finalized its provisional ratings on the following classes of notes issued by ARM Master Trust, LLC (the Issuer):

-- $103,846,000 Fixed Rate Series 2021-T1 Agricultural Loan Backed Notes, Class A at A (sf)
-- $8,654,000 Fixed Rate Series 2021-T1 Agricultural Loan Backed Notes, Class B at BBB (sf)
-- $103,846,000 Fixed Rate Series 2021-T2 Agricultural Loan Backed Notes, Class A at A (sf)
-- $8,654,000 Fixed Rate Series 2021-T2 Agricultural Loan Backed Notes, Class B at BBB (sf)

The ratings are based on DBRS Morningstar’s review of the following analytical considerations:

-- The assessment was guided by DBRS Morningstar’s set of macroeconomic scenarios for select economies related to the Coronavirus Disease (COVID-19) pandemic, available in its commentary, “Global Macroeconomic Scenarios: March 2021 Update,” published on March 17, 2021. DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which have been regularly updated. The scenarios were last updated on March 17, 2021, and are reflected in DBRS Morningstar’s rating analysis.

-- The assumptions consider the moderate macroeconomic scenario outlined in the commentary, with the moderate scenario serving as the primary anchor for the current ratings. The moderate scenario factors in increasing success in containment during the first half of 2021, enabling the continued relaxation of restrictions.

-- Transaction capital structure, ratings, and sufficiency of available credit enhancement.

-- Crop insurance coverage of the crops backing the collateral pool and concentration risks arising from concentration to a single approved insurance provider (AIP) or a crop type.

-- Insolvency risk of an AIP performing its obligations under the related federal crop insurance policy.

-- Payment terms of crops and payment obligations of the notes.

-- Credit quality and concentration of collateral as of the Statistical Disclosure Date and possible migration during revolving periods mitigated by concentration limits.

-- The underwriting and origination capabilities of Agrifund, LLC.

-- The ability of AG Resource Servicing, LLC, as the Servicer, to make and monitor collections on the collateral pool and other required activities.

-- The legal structure and presence of legal opinions that address the true sale of the assets to the Issuer, the nonconsolidation of the special-purpose vehicle with AG Resource Management, that the trust has a valid first-priority security interest in the assets, and consistency with DBRS Morningstar’s “Legal Criteria for U.S. Structured Finance.”

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is U.S. ABS General Ratings Methodology (December 2018), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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