KBRA Assigns Preliminary Ratings to Accelerated 2021-1H LLC

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Accelerated 2021-1H LLC (“AALLC 2021-1H”), a timeshare loan asset-backed securities transaction.

AALLC 2021-1H will issue four classes of notes totaling $194.185 million. The transaction has initial hard credit enhancement levels ranging from 66.45% for the Class A notes to 11.00% for the Class D notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account and excess spread.

The timeshare loans were originated by Holiday Inn Club Vacations (“HICV” or the “Company”) and have been sold to OLLAF 2020-1 LLC (“OLLAF”). OLLAF is an investment vehicle formed and administered by key managing members of Accelerated Assets, LLC, which is a Michigan based specialty finance firm concentrated on the acquisition, development, sale and financing of timeshare assets. The assets were originated in accordance with HICV’s standard financing guidelines. HICV will be the Servicer for the transaction.

This transaction is the ninth rated ABS securitization collateralized by a pool of timeshare receivables originated by HICV since 2006. Previous transactions were issued under the HIN Timeshare Trust (“HINTT”) shelf and the Orange Lake Timeshare Trust (“ONGLT”) shelf.

KBRA applied its U.S. Timeshare ABS Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure, and HICV’s historical static pool data. KBRA considered its operational review of HICV as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

• U.S. Timeshare ABS Rating Methodology
• 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.

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.

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) 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 pursuant to the Temporary Registration Regime. 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.

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