The rating was based on improved transparency, leading to faster access to data.

Fatburger wants to invest about $25 million for debt refinancing while other funds are allocated for the expansionary purpose.

Ownership of tokens only represents digital representation and will not represent actual ownership of notes.

Security rating giant, DBRS Morningstar, recently made its first security ratings on a blockchain-based platform. Fatburger is a blockchain-based company that specializes in fast foods. As reported by Forbes, the company raised about $38 million in Ethereum securities on Friday.

Rating based on better transparency

Although the rating is based on a debt security that closed last weekend, Morningstar rated the security based on increased transparency when using ethereum with faster access to data.

While the investment in Fat Brands, Fatburger’s parent company, is not massive with regards to total dollars, the firm has more projects they need to execute this year. That’s why it is seeking to raise more funds that could increase the total fundraising amount to $500 million. The estimation of the total securities market is out at $117 million. According to Andrew Wiederhorn, “It’ll be a transformative event for Fat Brands.”

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

He further revealed that Fat Brand’s track record of steady financial performance with average unit volume, revenues, and system-wide sales have grown tremendously for the past five years.

DBRS Morningstar gave the $19 million worth of class B notes a rating of “B”, while the $20 million class A notes were rated “BB”.

DBRS Morningstar wants more expansion

The 7.75% fixed rate notes per year are backed by initial upfront fees and royalties to the Fat brand franchise, which includes Ponderosa Steakhouse, Buffalo’s wings, and Fatburger.

Overall, 400 stores are meant to pay the fees while an additional 200 are billed to open. Weiderhorn also reiterated that the company intends to refinance existing debts with about $25 million of the debt security. It will use the remaining funds for expansionary purposes to acquire more restaurant brands. He added that the firm is going to buy some franchise brands this year to expand its operational offerings.

Structural program of Fat Brand

Fat Brand transferred stablecoins valued for $40 million to trustee UMB Bank’s wallet, with Fat Brands holding about 20 million of those tokens for two of the franchises in the wallet.

After settling the trades, it transferred about 80 million tokens to the different transaction parties via a Smart Contract. It made these transfers until all the investment dollars and ownership stakes were transferred to the appropriate wallets. It took about 26 steps before these transfers were complete.

But the restructuring consultant, Cadence (a US-based company) will issue investors security tokens and record all transactions on Ethereum. According to DBRS Morningstar, the Ethereum tokens will not represent the actual ownership of the notes but only digital representation of the ownership.