KBRA assigns preliminary ratings to three classes of notes that will be issued by Lyra Music Assets (Delaware) L.P., a music royalty ABS securitization. Lyra Music Assets (Delaware) L.P. represents Hipgnosis Song Assets' second music royalty securitization. The tranvsaction will be collateralized by royalties from a music catalog of premium content from top artists and songwriters, including the Red Hot Chili Peppers, Neil Young, Journey, The Chainsmokers, and Shakira, which are among the largest in the Catalog by net publisher share and net label share. Royalty payments include both publishing rights and sound recording rights. As of August 1, 2024, an independent third-party valuation firm valued the Catalog at $2.36 billion using a discounted cash flow method.

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Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• 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.

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About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 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.

Doc ID: 1006566

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