Credit rating agency

AM Best Revises Issuer Credit Rating Outlook to Stable for Blue Cross and Blue Shield of Vermont and Its Subsidiary

Wednesday, July 1, 2020 - 2:55pm

AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of bbb+ of Blue Cross and Blue Shield of Vermont and its wholly owned subsidiary, The Vermont Health Plan, LLC.

Key Points: 
  • AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of bbb+ of Blue Cross and Blue Shield of Vermont and its wholly owned subsidiary, The Vermont Health Plan, LLC.
  • The revision of the Long-Term ICR outlook to stable reflects a material improvement in BCBSVT Groups risk-adjusted capital for 2019, as measured by Best Capital Adequacy Ratio (BCAR).
  • For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Bests Credit Ratings .
  • AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry.

KBRA Releases Research - Coronavirus (COVID-19): A Closer Look at State Multifamily Rent Legislation

Monday, June 29, 2020 - 6:35pm

Kroll Bond Rating Agency (KBRA) releases a report titled Coronavirus (COVID-19): A Closer Look at State Multifamily Rent Legislation.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases a report titled Coronavirus (COVID-19): A Closer Look at State Multifamily Rent Legislation.
  • With the first confirmed coronavirus (COVID-19) case in the U.S. on January 21, 2020, the crisis has now reached its sixth month.
  • KBRA examined CMBS 2.0 and rated Freddie Mac K-Series deals to identify the locations where much of the securitized multifamily stock is located.
  • KBRA identified four states that accounted for approximately 40% of the total CMBS 2.0 and rated Freddie K Series multifamily universe ($155 billion).

EU Bank times 15-year benchmark Climate Awareness Bond and extension of CAB-eligibilities on approval of EU Sustainability Taxonomy Regulation by European Parliament

Friday, June 26, 2020 - 12:09am

The fact that information about a particular issue of securities is given on this web site does not mean that those securities are permitted investments under such laws and regulations.

Key Points: 
  • The fact that information about a particular issue of securities is given on this web site does not mean that those securities are permitted investments under such laws and regulations.
  • Investing in securities carries risks, especially in the case of structured or long-dated securities.
  • Financial intermediaries who recommend investments in securities issued by EIB should ensure that the investors understand the risks attached to such investments.
  • Nothing on this web site constitutes an offer to sell any investment.

KBRA Assigns Preliminary Ratings to CarNow Auto Receivables Trust 2020-1

Thursday, June 25, 2020 - 9:15pm

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by CarNow Auto Receivables Trust 2020-1 (CNART 2020-1), a subprime auto asset-backed securities transaction.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued by CarNow Auto Receivables Trust 2020-1 (CNART 2020-1), a subprime auto asset-backed securities transaction.
  • The review did not result in Watch Placements on any outstanding ratings from KBRA rated CNART transactions.
  • Due to the impact of COVID-19 on the economy, KBRA also used lower recovery rates and a longer recovery lag assumption on defaulted loans.
  • CarNow Auto Receivables Trust 2020-1 (CNART 2020-1 or the Issuer) will issue five classes of notes totaling $118.73 million that are collateralized by a pool of retail automobile contracts, made to subprime obligors that are secured by used automobiles.

KBRA Assigns Ratings to Enterprise Bancorp, Inc.

Thursday, June 25, 2020 - 8:13pm

Kroll Bond Rating Agency (KBRA) assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 for Lowell, Massachusetts based Enterprise Bancorp, Inc. (NASDAQ: EBTC).

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 for Lowell, Massachusetts based Enterprise Bancorp, Inc. (NASDAQ: EBTC).
  • In addition, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 for its subsidiary, Enterprise Bank and Trust Company.
  • The ratings are underpinned by a strong core deposit franchise that continues to support EBTCs durable and above-average NIM.
  • KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission.

AM Best Maintains Under Review With Negative Implications Status for Universal Life Insurance Company Following Arbitration Award

Thursday, June 25, 2020 - 7:51pm

AM Best has maintained the under review with negative implications status for the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of bbb- of Universal Life Insurance Company (San Juan, PR) (Universal Life) following a reinsurance arbitration award.

Key Points: 
  • AM Best has maintained the under review with negative implications status for the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of bbb- of Universal Life Insurance Company (San Juan, PR) (Universal Life) following a reinsurance arbitration award.
  • Universal Life was awarded a $524 million reinsurance arbitration award on June 2, 2020, with the arbitration panel ordering PBLA to fund fully a segregated trust account with cash for the sole benefit of Universal Life.
  • The arbitration award is certainly a favorable development; however, AM Best remains concerned about the timing of the funding of the segregated trust account.
  • AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry.

KBRA Assigns Ratings to Venerable Holdings, Inc. and its Key Operating Subsidiary

Thursday, June 25, 2020 - 5:27pm

Kroll Bond Rating Agency (KBRA) assigns an insurance financial strength rating (IFSR) of A- to Venerable Holdings, Inc.s (VHI) primary subsidiary, Venerable Insurance and Annuity Company (VIAC), and a debt rating of BBB to four series of VIACs surplus notes.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns an insurance financial strength rating (IFSR) of A- to Venerable Holdings, Inc.s (VHI) primary subsidiary, Venerable Insurance and Annuity Company (VIAC), and a debt rating of BBB to four series of VIACs surplus notes.
  • Also supporting the ratings are the companys risk management and hedging programs, which have produced a strong track record over its two-year history.
  • Specifically, during the market stresses of 4Q2018 and 1Q2020, VIACs programs led to increases in excess capital.
  • Conservative capital management is focused on fulfilling obligations to policyholders, and financial performance is measured by growth in excess capital.

KBRA Assigns a Preliminary Rating to Driven Brands Funding, LLC Series 2020-1 Senior Secured Notes

Wednesday, June 24, 2020 - 10:46pm

Kroll Bond Rating Agency (KBRA) assigns preliminary rating to a note class of Driven Brands Funding, LLC, (the Issuer) a whole business securitization.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary rating to a note class of Driven Brands Funding, LLC, (the Issuer) a whole business securitization.
  • The transaction structure is a master trust, and the Series 2020-1, Class A-2 Notes (the Series 2020-1 Notes) represent the Companys seventh securitization within the trust.
  • Driven Brands Funding, LLC and Driven Brands Canada Funding Corporation (the Canadian Co-Issuer) are expected to issue $175 million of Series 2020-1 Notes, which will be pari passu with Notes from the prior six Series (the Outstanding Notes and together with the Series 2020-1, Class A2 Notes, the Notes).
  • In conjunction with the issuance of the Series 2020-1 Notes, KBRA anticipates affirming the ratings on the Issuers outstanding Notes owing to the performance of the underlying collateral, which is consistent with our rating stresses following the addition of the Series 2020-1 Notes.

KBRA Assigns Ratings to MidWestOne Financial Group, Inc.

Wednesday, June 24, 2020 - 5:56pm

Kroll Bond Rating Agency (KBRA) assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 for Iowa City, Iowa-based MidWestOne Financial Group, Inc. (NASDAQ: MOFG) (MidWestOne or the company).

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 for Iowa City, Iowa-based MidWestOne Financial Group, Inc. (NASDAQ: MOFG) (MidWestOne or the company).
  • In addition, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 for its subsidiary, MidWestOne Bank.
  • KBRA positively views the diversification efforts in recent yearswith management effectively expanding its footprint, business lines, and loan book through M&A and team lift outs.
  • However, KBRA notes that earnings have benefited from a considerable amount of purchase accounting accretion income (contributing 37 bps to NIM in 2019).

AM Best to Host Webinar on the State of the Italian Insurance Market

Wednesday, June 24, 2020 - 4:30pm

AM Best will host a complimentary webinar on Thursday, July 2, 2020, at 16:00 (CEST), Milan.

Key Points: 
  • AM Best will host a complimentary webinar on Thursday, July 2, 2020, at 16:00 (CEST), Milan.
  • How does AM Best, the credit rating agency, specializing in the insurance and reinsurance sector, view the development of the Italian insurance industry?
  • This would likely have a negative impact on premium levels in the non-life insurance segment.
  • Angela Yeo, senior director, analytics & head of operations;
    AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry.