KBRA assigns preliminary ratings to Pizza Hut Issuer LLC, Series 2026-1 Class A-1-VFN, Class A-1-LR, Class A-2-I and Class A-2-II Notes, a whole business securitization (WBS). The rating actions follow KBRA’s analysis which indicates that the transaction's credit enhancement for the notes and cash flows are sufficient to support the preliminary ratings.

The Series 2026-1 transaction represents Pizza Hut’s inaugural whole business securitization. In conjunction with the issuance, Pizza Hut of America LLC will contribute substantially all of its North American revenue-generating assets to the Issuer. Proceeds from the issuance will be used to refinance existing corporate debt, pay transaction expenses and for general corporate purposes, including strategic investments in the US and Canadian businesses.

Pizza Hut is one of the largest restaurant brands globally and the second-largest pizza restaurant brand worldwide by unit count and systemwide sales (SWS). The transaction is supported by a securitized restaurant network that generated approximately $5.4 billion of SWS from approximately 6,678 locations across the United States, Canada, certain US territories and US military locations worldwide, of which over 99% are franchised, as of the last twelve-month period ending Q2 2026.

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Methodologies

• ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty 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.

Information on certain affiliations between directors of KBRA Ratings and rated entities or related third parties 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 US 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. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. 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: 1017880

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