Kroll Bond Rating Agency

KBRA Releases Research – Coronavirus (COVID-19): U.S. RMBS and Residential Real Estate Ramifications

Friday, March 27, 2020 - 8:42pm

Kroll Bond Rating Agency (KBRA) releases a report detailing considerations relevant to the U.S. RMBS ratings process, given the current status of the coronavirus (COVID-19) outbreak.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases a report detailing considerations relevant to the U.S. RMBS ratings process, given the current status of the coronavirus (COVID-19) outbreak.
  • A summary of KBRAs discussions with front-line market participants including mortgage servicers, RMBS sponsors, and mortgage insurance companies.
  • Discussions on how KBRAs approach to rating RMBS considers current information and how this may evolve over time.
  • KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO.

KBRA Releases Research – Coronavirus (COVID-19): Mass Transit Bonds Backed by Sales Taxes and Gross Revenues Are a Mixed Bag

Friday, March 27, 2020 - 7:31pm

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO.

Key Points: 
  • KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO.
  • 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 and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA).
  • Kroll Bond Rating Agency Europe Limited is located at 6-8 College Green, Dublin 2, Ireland.

KBRA Releases Research – Coronavirus (COVID-19): Investment Funds Weathering the Storm … For Now

Thursday, March 26, 2020 - 8:53pm

Kroll Bond Rating Agency (KBRA) releases research that examines the impact of the new coronavirus (COVID-19) on the investment funds sector.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases research that examines the impact of the new coronavirus (COVID-19) on the investment funds sector.
  • Although KBRAs outlook for the global investment fund sector remains stable, we expect that some asset managers and strategies will experience stress due to this prolonged economic slowdown.
  • Additionally, when an investment fund utilizes leverage, there are multiple transactional and structural features that serve as mitigants to the potential impact of this market volatility.
  • KBRA will continue to actively monitor all of its outstanding ratings and remains in constant dialogue with issuers and market participants.

KBRA Releases Research – Coronavirus (COVID-19): CMBS SASB Retail Mall Loans to Underperform

Thursday, March 26, 2020 - 3:08pm

Kroll Bond Rating Agency (KBRA) releases a report on commercial mortgage-backed security (CMBS) single asset-single borrower (SASB) retail mall performance in the wake of the coronavirus (COVID-19) contagion.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases a report on commercial mortgage-backed security (CMBS) single asset-single borrower (SASB) retail mall performance in the wake of the coronavirus (COVID-19) contagion.
  • At this point in the U.S., many retail malls have shuttered or are operating only with essential retail offerings.
  • Mall owners may be forced to reduce rents to keep occupancy levels high, with any such measures potentially to be far from temporary.
  • As a result, the KBRA Performance Outlook (KPO) for loans which serve as collateral for 22 CMBS SASB retail mall transactions have been assigned or revised to Underperform.

KBRA Releases Research – Coronavirus (COVID-19): Global Insurance Update

Tuesday, March 24, 2020 - 8:59pm

Kroll Bond Rating Agency (KBRA) releases updated views about COVID-19s implications for the global insurance sector.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases updated views about COVID-19s implications for the global insurance sector.
  • In this report, KBRA updates our previous views on the implications of the COVID-19 crisis for the life and property and casualty (P&C) insurance subsectors.
  • We also provide a summary of certain topics that have developed since our previous reports and give a brief outlook.
  • KBRA notes that the situation is developing rapidly and what is unthinkable today could become tomorrows reality.

KBRA Assigns AA+ Rating to the MTA Transportation Revenue Bonds, Series 2020C and Places This Rating on Watch Downgrade

Tuesday, March 24, 2020 - 8:52pm

Kroll Bond Rating Agency (KBRA) assigns a long-term rating of AA+ to Metropolitan Transportation Authority (MTA) Transportation Revenue Bonds, Series 2020C, and places this rating on Watch Downgrade.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns a long-term rating of AA+ to Metropolitan Transportation Authority (MTA) Transportation Revenue Bonds, Series 2020C, and places this rating on Watch Downgrade.
  • Concurrently, KBRA affirms the long-term rating of AA+ on the MTAs outstanding transportation revenue bonds, and also places that debt on Watch Downgrade.
  • KBRA also affirmed the short-term rating of K1+ on the MTAs outstanding transportation revenue bond anticipation notes (see list below).
  • Transportation Revenue Bond Anticipation Notes, Series 2018B Subseries 2018B-1
    Transportation Revenue Bond Anticipation Notes, Series 2018B Subseries 2018B-2
    Transportation Revenue Bond Anticipation Notes, Series 2018C-1
    Transportation Revenue Bond Anticipation Notes, Series 2018C-2
    Transportation Revenue Bond Anticipation Notes, Series 2019A
    Transportation Revenue Bond Anticipation Notes, Series 2019B Subseries 2019B-1
    Transportation Revenue Bond Anticipation Notes, Series 2019B Subseries 2019B-2
    Transportation Revenue Bond Anticipation Notes, Series 2019C
    Transportation Revenue Bond Anticipation Notes, Series 2019D
    Transportation Revenue Bond Anticipation Notes, Series 2019E
    Transportation Revenue Bond Anticipation Notes, Series 2019F
    The rating was assigned and affirmed because of the following key credit considerations:
    The gross revenue pledge that supports debt service.

KBRA Releases Research – Coronavirus (COVID-19): U.S. BSL CLOs’ At-Risk Sector Exposure Takes Shape

Tuesday, March 24, 2020 - 4:59pm

Kroll Bond Rating Agency (KBRA) releases a report which details U.S. broadly syndicated loan (BSL) collateralized loan obligation (CLO) exposure in sectors that, in KBRAs opinion, are the most at risk due to the coronavirus (COVID-19) pandemic.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases a report which details U.S. broadly syndicated loan (BSL) collateralized loan obligation (CLO) exposure in sectors that, in KBRAs opinion, are the most at risk due to the coronavirus (COVID-19) pandemic.
  • As the virus has implications for a multitude of issuers across a wide swathe of corporate sectors, KBRA is assessing the potential impact on CLOs.
  • The transactions are generally collateralized by portfolios of leveraged loans that are diversified across corporate sectors.
  • KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO.

KBRA Releases Research – Coronavirus (COVID-19): CMBS SASB Lodging Loans to Underperform

Tuesday, March 24, 2020 - 4:16pm

Kroll Bond Rating Agency (KBRA) releases a report on commercial mortgage-backed securities (CMBS) single asset-single borrower (SASB) transaction performance as the coronavirus pandemic continues to spread and wreak economic havoc.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases a report on commercial mortgage-backed securities (CMBS) single asset-single borrower (SASB) transaction performance as the coronavirus pandemic continues to spread and wreak economic havoc.
  • As a result, the KBRA Performance Outlook (KPO) for the loans which serve as collateral for 12 of our 13 rated CMBS SASB lodging transactions have been assigned to Underperform or revised to Underperform from Perform.
  • A KPO is an assessment of Outperform, Perform, or Underperform based on recent and expected collateral performance.
  • KPOs are generally assigned to loans in KBRA rated CMBS transactions approximately one year after securitization at the time of our first annual surveillance review.

KBRA Releases Research – Coronavirus (COVID-19): Does 9/11 Provide Guidance for CMBS Lodging Performance?

Tuesday, March 24, 2020 - 3:57pm

Kroll Bond Rating Agency (KBRA) releases its Does 9/11 Provide Guidance for CMBS Lodging Performance?

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases its Does 9/11 Provide Guidance for CMBS Lodging Performance?
  • With coronavirus cases increasing daily in the United States, business travel has been curtailed, vacations have been put on hold, and conferences and large events have been canceled.
  • Widespread fear is wreaking havoc on the travel industry, which is weighing heavily on the lodging sector.
  • This may provide some historical guidance as to the economic fallout stemming from COVID-19.

KBRA Releases The Bank Treasury Newsletter, Chart Deck, and Bank Talk: The After-Show

Tuesday, March 24, 2020 - 1:21pm

Kroll Bond Rating Agency (KBRA) releases this months editions of the Newsletter, Chart Deck, and Bank Talk: The After-Show.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases this months editions of the Newsletter, Chart Deck, and Bank Talk: The After-Show.
  • The March edition of the Bank Treasury Newsletter Chart Deck focuses on shadow banks and their participation in the capital markets.
  • It also looks at retail savers and their participation through equity and money market funds, even as retail savings deposits continue to grow.
  • Finally, Ethan Heisler and Van Hesser, KBRAs Chief Strategist, discuss negative rates in this months edition of Bank Talk: The After-Show.