KBRA

KBRA Assigns Ratings to AG Twin Brook Capital Income Fund's $240 Million Senior Unsecured Notes Due 2027 and 2029

Retrieved on: 
Wednesday, March 20, 2024
Banking, Professional Services, Finance, Uncertainty, Pressure, Risk management, BBB, Risk, KBRA, BDC, Investment, AUM, Outlook, Health care, TCAP, RIC

KBRA assigns a BBB rating to AG Twin Brook Capital Income Fund's ("TCAP" or "the company") $90 million, 7.69% senior unsecured notes due March 19, 2027, and its $150 million, 7.78% senior unsecured notes due March 19, 2029.

Key Points: 
  • KBRA assigns a BBB rating to AG Twin Brook Capital Income Fund's ("TCAP" or "the company") $90 million, 7.69% senior unsecured notes due March 19, 2027, and its $150 million, 7.78% senior unsecured notes due March 19, 2029.
  • The proceeds will be used for general corporate purposes and to pay down secured credit facilities.
  • TPG Angelo Gordon provides the company with robust deal sourcing, a strong sponsor network, and extensive banking relationships.
  • Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com .

KBRA Assigns Preliminary Ratings to PowerPay Issuance Trust 2024-1

Retrieved on: 
Tuesday, March 19, 2024
Professional Services, Finance, Chartway Federal Credit Union, Sale, KBRA, Credit, PCG, Collection, Security (finance)

KBRA assigns preliminary ratings to three classes of notes issued by PowerPay Issuance Trust 2024-1 (“PowerPay 2024-1”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements and elective medical.

Key Points: 
  • KBRA assigns preliminary ratings to three classes of notes issued by PowerPay Issuance Trust 2024-1 (“PowerPay 2024-1”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements and elective medical.
  • PowerPay 2024-1 will issue three classes of notes totaling $118.893 million, collateralized by $130.94 million of receivables.
  • PowerPay currently offers financing in all 50 states and the District of Columbia through its credit union partners via the PowerPay Platform.
  • KBRA considered its operational review of PowerPay LLC, as well as several business updates with the Company since that time.

KBRA Releases Research – Navigating European CLO Tail Risk: Mind the Amortisation Gap

Retrieved on: 
Tuesday, March 19, 2024
Professional Services, Insurance, Finance, CLO, Vintage, Risk, KBRA, Documentation, Lisp (programming language), Bookkeeping

In this report, we explore the amortisation profiles of European CLOs.

Key Points: 
  • In this report, we explore the amortisation profiles of European CLOs.
  • Market amortisation rates at the end of a reinvestment period vary greatly across managers.
  • As of the sixth period after ending reinvestment, senior tranche amortisation can range from 0% to 53% by manager.
  • Such restrictions will be put to the test given the volume of transactions that have entered or will enter amortisation periods.

KBRA Assigns Preliminary Ratings to CROSS 2024-H2 Mortgage Trust

Retrieved on: 
Tuesday, March 19, 2024
Professional Services, Finance, ESG, KBRA

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.

Key Points: 
  • 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 .
  • 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 .

KBRA Assigns Preliminary Ratings to Foundation Finance Trust 2024-1

Retrieved on: 
Tuesday, March 19, 2024
Professional Services, Finance, Partnership, Credit, Class, KBRA, Security (finance)

KBRA assigns preliminary ratings to four classes of notes issued by Foundation Finance Trust 2024-1 (“FFIN 2024-1”), an asset-backed securitization collateralized by unsecured consumer loans primarily used for home improvements.

Key Points: 
  • KBRA assigns preliminary ratings to four classes of notes issued by Foundation Finance Trust 2024-1 (“FFIN 2024-1”), an asset-backed securitization collateralized by unsecured consumer loans primarily used for home improvements.
  • FFIN 2024-1 has initial credit enhancement levels ranging from 35.50% for the Class A notes to 4.20% for the Class D notes.
  • Foundation was founded in 2012 through the partnership of an experienced management team and Garrison Investment Group (“Garrison”).
  • KBRA considered its operational reviews of Foundation, as well as regular due diligence calls with Foundation.

KBRA Affirms and Publishes Ratings for PineBridge Private Credit III Parallel RFF, L.P.

Retrieved on: 
Tuesday, March 19, 2024
Professional Services, Finance, ESG, Jules Kroll, KBRA, Equity, Disclosure, Note, European, Debt-to-GDP ratio, Policy, Security (finance)

KBRA publishes and affirms an A- rating to the Class A Senior Notes (“Class A Notes”) and a BBB- rating to the Class B Subordinated Notes (“Class B Notes”, and together the “Notes”) issued by PineBridge Private Credit III Parallel RFF, L.P. (the “Issuer” or the “Borrower”).

Key Points: 
  • KBRA publishes and affirms an A- rating to the Class A Senior Notes (“Class A Notes”) and a BBB- rating to the Class B Subordinated Notes (“Class B Notes”, and together the “Notes”) issued by PineBridge Private Credit III Parallel RFF, L.P. (the “Issuer” or the “Borrower”).
  • The ratings were originally assigned on August 31, 2022 and were affirmed on October 6, 2023 on an unpublished basis.
  • Proceeds of the Notes along with the Equity are used to finance its share of allocable capital contributions to PineBridge Private Credit III Parallel, L.P. (“Master Fund”), of which it is a limited partner.
  • Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

KBRA Affirms and Publishes Ratings for PineBridge Private Credit III RFF, L.P.

Retrieved on: 
Tuesday, March 19, 2024
Banking, Professional Services, Finance, ESG, Jules Kroll, KBRA, Equity, Disclosure, Note, European, Debt-to-GDP ratio, Policy, Security (finance)

KBRA publishes and affirms a BBB- rating to the Class A Senior Notes (“Class A Notes”) and a B+ rating to the Class B Subordinated Notes (“Class B Notes”, and together the “Notes”) issued by PineBridge Private Credit III RFF, L.P. (the “Issuer” or the “Borrower”).

Key Points: 
  • KBRA publishes and affirms a BBB- rating to the Class A Senior Notes (“Class A Notes”) and a B+ rating to the Class B Subordinated Notes (“Class B Notes”, and together the “Notes”) issued by PineBridge Private Credit III RFF, L.P. (the “Issuer” or the “Borrower”).
  • The ratings were originally assigned on September 21, 2022 and were affirmed on October 11, 2023 on an unpublished basis.
  • Proceeds of the Notes along with the Equity are used to finance its share of allocable capital contributions to PineBridge Private Credit III, L.P. (“Master Fund”), of which it is a limited partner.
  • Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

KBRA Assigns Preliminary Ratings to FMC GMSR ISSUER TRUST, MSR COLLATERALIZED NOTES, Series 2024-SAT1

Retrieved on: 
Tuesday, March 19, 2024
Banking, Professional Services, Finance, MSR, Note, VFN, TRUST, KBRA, Government National Mortgage Association, FMC, Telescopic sight

KBRA assigns preliminary ratings of ‘BBB- (sf)’ to the Series 2024-SAT1 Term Notes from FMC GMSR ISSUER TRUST, Freedom Mortgage Corporation’s (FMC) master trust issuer of notes backed by a participation certificates evidencing participation interests in mortgage servicing rights (MSR) on loans underlying Ginnie Mae guaranteed mortgage backed securities.

Key Points: 
  • KBRA assigns preliminary ratings of ‘BBB- (sf)’ to the Series 2024-SAT1 Term Notes from FMC GMSR ISSUER TRUST, Freedom Mortgage Corporation’s (FMC) master trust issuer of notes backed by a participation certificates evidencing participation interests in mortgage servicing rights (MSR) on loans underlying Ginnie Mae guaranteed mortgage backed securities.
  • KBRA’s rating on the Series 2024-SAT1 Term Notes is primarily driven by the credit rating of Freedom Mortgage Corporation (“FMC”) (KBRA Rating: BB+/Stable) as repurchase obligor under a repo facility in support of the Issuer’s mortgage servicing rights (“MSRs”) granted by Ginnie Mae to FMC, with certain transaction features, such as (i) the alignment of interest between FMC, Ginnie Mae, and the VFN and term noteholders, (ii) the potential ability to transfer servicing in the event of a FMC default, (iii) the existence of the Ginnie Mae Acknowledgment Agreement, and (iv) the requirement that the borrowing base be trued up monthly, providing slight uplift on the rating of the notes.
  • To access rating and relevant documents, click here .
  • Click here to view the report.

KBRA Releases Research – Retail Sales Rebound in February but Still Lag Inflation

Retrieved on: 
Tuesday, March 19, 2024
Retail, Professional Services, Other Retail, Finance, Research, Growth, KBRA

KBRA releases research examining February Retail Sales.

Key Points: 
  • KBRA releases research examining February Retail Sales.
  • This month's report discusses the return to retail sales growth in February following a January slide, as well as the persistent gap between retail sales growth and headline inflation over the last year as consumption continues to normalize following the recent period of pandemic-era stimulus-fueled growth.
  • Click here to view the report.

KBRA Releases Research – Data Centers: A Deeper Dive Into Colocation Transactions

Retrieved on: 
Tuesday, March 19, 2024
Banking, Professional Services, Insurance, Finance, Data, Research, KBRA

KBRA publishes research that examines data center issuance with regard to colocation transactions.

Key Points: 
  • KBRA publishes research that examines data center issuance with regard to colocation transactions.
  • Following KBRA’s publication of Data Centers in U.S. Securitization: A Primer , data center securitization issuance has continued to rise.
  • In this KBRA report, after providing a brief refresher on the types of data center transactions, as well as issuance volume, we place a spotlight on colocation transactions, discussing collateral profile, key metrics, and performance trends.
  • We have now entered the third year following the issuance of the first of four KBRA-rated colocation transactions ( DataBank 2021-1 ).