Kroll Bond Rating Agency

KBRA Assigns Preliminary Ratings to EOS (European Loan Conduit No.35) DAC

Retrieved on: 
Wednesday, June 5, 2019
Professional services, Banking, Finance, Finance, Money, Economy, Loans, Structured finance, Commercial mortgage-backed security, Mortgage-backed security, Mortgage loan, Kroll Bond Rating Agency, Corporate finance

Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of EOS (European Loan Conduit No.35) DAC, a CMBS single-borrower securitisation.

Key Points: 
  • Kroll Bond Rating Agency Europe Limited (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of EOS (European Loan Conduit No.35) DAC, a CMBS single-borrower securitisation.
  • The collateral for the transaction is a 291.0 million pari passu portion of a 416.0 million limited recourse, first lien mortgage loan.
  • The floating rate loan has a three-year initial term with two, one-year extension options.
  • The loan is secured by the borrowers interests in 165 office (65), industrial (50), and retail (50) assets.

KBRA Releases CRE CLO Ramp-Up: From Beginning to End With More of the Same … So Far

Retrieved on: 
Wednesday, June 5, 2019
Professional services, Banking, Finance, Loans, Economy, Mortgage, Collateralized loan obligation, Kroll Bond Rating Agency, KBRA, Credit rating agency, CLO

Kroll Bond Rating Agency (KBRA) releases its CRE CLO Ramp-Up: From Beginning to End With More of the Same So Far research report, which analyzes commercial real estate collateralized loan obligation (CRE CLO) ramp-up mechanics, provisions and trends observed in KBRA-rated transactions.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases its CRE CLO Ramp-Up: From Beginning to End With More of the Same So Far research report, which analyzes commercial real estate collateralized loan obligation (CRE CLO) ramp-up mechanics, provisions and trends observed in KBRA-rated transactions.
  • The ramp-up feature has become fairly common among managed CRE CLOs over the past 18 months.
  • A breakdown of the 18 managed CRE CLOs rated by KBRA since 2017 shows that 11 have incorporated ramp-up provisions, including seven of the last nine transactions.
  • Generally, ramp-up assets have so far had credit characteristics that were consistent with the initial pool.

KBRA Assigns Preliminary Rating to Business Jet Securities 2019-1, LLC, Secured Notes, Series 2019-1

Retrieved on: 
Tuesday, June 4, 2019
Professional services, Banking, Finance, Finance, Money, Economy, Leasing, Business law, Structured finance, Financial law, Contract law, Asset-backed security, Finance lease, Kroll Bond Rating Agency, Credit rating agency

Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to one note class of Business Jet Securities 2019-1, LLC, Secured Notes, Series 2019-1.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to one note class of Business Jet Securities 2019-1, LLC, Secured Notes, Series 2019-1.
  • The Notes are newly issued asset-backed securities secured by payments due under the lease of, and loans secured by, business jet aircraft and the economic ownership of each business aircraft and helicopter subject to an operating lease and terms of the fixed rate notes as of June 4, 2019.
  • The average asset value is approximately $17.8 million and the weighted average remaining term is approximately 89 months with further detail regarding contract terminations provided below.
  • Approximately 55.2% of the portfolio is initially on operating leases, while 12.6% are loans and 32.2% are finance leases.

KBRA Releases Commentary: CDFI Loan Levels in Private-Label RMBS Expected to Rise

Retrieved on: 
Tuesday, June 4, 2019
Professional services, Finance, Insurance, Economy, Money, Finance, Loans, Ethical banking, Community development financial institution, United States housing bubble, Kroll Bond Rating Agency, Securitization, Mortgage loan, Collateral, Community Development Financial Institutions Fund

Kroll Bond Rating Agency (KBRA) releases its Community Development Financial Institution (CDFI) Loan Levels in Private-Label RMBS Expected to Rise commentary.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases its Community Development Financial Institution (CDFI) Loan Levels in Private-Label RMBS Expected to Rise commentary.
  • The CDFI program, which dates to the mid-1990s, is taking on renewed significance as loans originated by CDFIs are exempt from the Ability-to-Repay/Qualified Mortgage Rule issued by the Consumer Financial Protection Bureau.
  • Although the Rule has been in effect since January 2014, CDFI collateral has only recently attracted the attention of loan aggregators seeking to include the loans in non-Qualified Mortgage private-label securitizations.
  • In this commentary, KBRA provides color on the nuances and potential effects of the CDFI-related collateral in PLS as well as provides a brief history and background of the CDFI program.

KBRA Assigns Preliminary Ratings to Welk Resorts 2019-A

Retrieved on: 
Friday, May 31, 2019
Professional services, Banking, Finance, Finance, Economy, Money, Kroll Bond Rating Agency, KBRA, Bond credit rating, Credit rating agency, Lawrence Welk

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Welk Resorts 2019-A (WELK 2019-A).

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Welk Resorts 2019-A (WELK 2019-A).
  • Welk Resorts 2019-A, LLC will issue four classes of notes rated AAA (sf) through BBB- (sf), totaling $150.72 million.
  • Welk 2019-A includes a prefunding feature that allows up to $25 million or 16.3% of the collateral pool to be purchased up to 180 days from closing.
  • KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

KBRA Releases Report – Congestion Pricing … What It Means for the MTA and TBTA

Retrieved on: 
Thursday, May 30, 2019
Professional services, Banking, Finance, Insurance, Finance, Money, Economy, Credit rating agencies, Nationally recognized statistical rating organization, Kroll Bond Rating Agency, Shelf registration, Prospectus, Bond credit rating, Asset-backed security, Security, Bond

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) by the European Securities and Markets Authority (ESMA).
  • Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

KBRA Assigns Preliminary Ratings for Hana Financial 2019-1 Pass-Through Trust

Retrieved on: 
Wednesday, May 29, 2019
Professional services, Banking, Finance, Finance, Economy, Money, Kroll Bond Rating Agency, Bond credit rating, Credit rating agency

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings on eight class of notes and four class of certificates issued by Hana Financial 2019-1 Pass-Through Trust.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings on eight class of notes and four class of certificates issued by Hana Financial 2019-1 Pass-Through Trust.
  • Hana Financial SPV I, LLC will sell four classes of Series 2019-1 variable funding notes, Class A1 Notes, Class B1 Notes, Class C1 Notes, and Class D1 Notes (VFN), and four classes of term notes, Class A2 Notes, Class B2 Notes, Class C2 Notes and Class D2 Notes (Term Notes).
  • The four classes of Term Notes will be transferred to Hana Financial 2019-1 Pass-Through Trust (Pass-Through Trust).
  • Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

KCP Releases Special Report: Robert C. Morgan – CMBS Exposure Update

Retrieved on: 
Wednesday, May 29, 2019
Professional services, Banking, Finance, Insurance, Financial markets, Finance, Mortgage-backed security, Kroll Bond Rating Agency, Money, Commercial mortgage-backed security

Kroll Bond Rating Agency (KBRA) releases its Robert C. Morgan CMBS Exposure Update special report, in which we examined the latest developments in the ongoing investigation of Robert C. Morgan and affiliated entities and the resulting impacts to CMBS transactions with exposure to Robert C. Morgan.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases its Robert C. Morgan CMBS Exposure Update special report, in which we examined the latest developments in the ongoing investigation of Robert C. Morgan and affiliated entities and the resulting impacts to CMBS transactions with exposure to Robert C. Morgan.
  • KBRA Credit Profile (KCP) has been monitoring the Robert C. Morgan investigation since the fall of 2017 at which time we published a special report examining CMBS exposure to identify more than 150 loans affiliated with Morgan and related entities as a sponsor.
  • KCP identified six CMBS transactions with exposure to properties that would be subject to forfeiture in the event of a conviction.
  • Our updated Robert C. Morgan exposure list identified 170 loans totaling $1.79 billion across 81 transactions.

KBRA Assigns Preliminary Ratings to MSC 2019-H6

Retrieved on: 
Wednesday, May 29, 2019
Professional services, Banking, Finance, Finance, Money, Financial markets, Structured finance, Mortgage-backed security, Kroll Bond Rating Agency, Commercial mortgage-backed security, Mortgage, Credit rating agency, Commercial mortgage

Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 17 classes of MSC 2019-H6 (see ratings list below), a $686.8 million CMBS conduit transaction collateralized by 46 commercial mortgage loans secured by 255 properties.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 17 classes of MSC 2019-H6 (see ratings list below), a $686.8 million CMBS conduit transaction collateralized by 46 commercial mortgage loans secured by 255 properties.
  • The pool has exposure to all the major property types, with the top three being retail (29.7%), lodging (21.9%), and office (21.7%).
  • The preliminary ratings are based on information known to KBRA at the time of this publication.
  • Information received subsequent to this release could result in the assignment of ratings that differ from the preliminary ratings.

KBRA Releases Research on the Evolution of the Consumer Loan Marketplace Lending (MPL) Sector

Retrieved on: 
Friday, May 24, 2019
Professional services, Banking, Finance, Insurance, Economy, Finance, Money, Personal finance, Kroll Bond Rating Agency, Credit score, Credit rating agency, Credit card, Credit

Kroll Bond Rating Agency (KBRA) releases a research report examining the evolution of the consumer loan marketplace lending (MPL) sector.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases a research report examining the evolution of the consumer loan marketplace lending (MPL) sector.
  • Since inception, platforms have made improvements that address many of the key credit considerations highlighted by KBRA when it first began rating consumer MPL securitizations.
  • For instance, most platforms have:
    recruited experienced business leaders with backgrounds in traditional banking, specialty finance, and credit card companies,
    developed more predictive credit scoring models built off their own performance data, providing significant lift compared to FICO alone or models built on proxy data,
    accumulated seasoned static pool vintages and historical performance data to improve loss forecasting,
    tightened underwriting criteria, shifted internal credit grade mix, shortened duration, and reduced loan size in response to observed and/or anticipated credit softening,
    made advances in many operational areas including loan servicing, fraud identification, and mitigating loan stacking,
    diversified funding sources to create alignment of interests and increase funding stability.
  • As the leading rating agency in the consumer MPL sector, KBRA aims to provide timely and in-depth credit ratings and research for investors within this maturing industry.