KBRA

KBRA Releases Monthly CMBS Trend Watch

Retrieved on: 
Tuesday, September 5, 2023
Other Professional Services, Professional Services, Finance, KBRA, CRE, Publication, Federal Reserve, Research, SB, Cryptocurrency

KBRA releases the August 2023 issue of CMBS Trend Watch.

Key Points: 
  • KBRA releases the August 2023 issue of CMBS Trend Watch.
  • However, even before his hawkish statement, the commercial real estate (CRE) securitization market was already taking a pre-Labor Day break.
  • In August, KBRA published pre-sales for four deals ($3.5 billion) including two SB ($2 billion), one Agency ($947.8 million), and one conduit ($604.4 million).
  • This month’s edition also highlights recent KBRA research publications, which cover various topical issues.

KBRA Releases Surveillance Report for WSFS Financial Corporation

Retrieved on: 
Friday, September 1, 2023
Consulting, Banking, Professional Services, Finance, WSFS Bank, KBRA, BBB, Outlook, FSB, WSFS, Security (finance), Telescopic sight, K2

On August 9, 2023, KBRA affirmed the senior unsecured debt rating of A-, the subordinated debt rating of BBB+, and the short-term debt rating of K2 for Wilmington, Delaware based WSFS Financial Corporation (NASDAQ: WSFS)(“the company”).

Key Points: 
  • On August 9, 2023, KBRA affirmed the senior unsecured debt rating of A-, the subordinated debt rating of BBB+, and the short-term debt rating of K2 for Wilmington, Delaware based WSFS Financial Corporation (NASDAQ: WSFS)(“the company”).
  • In addition, KBRA affirmed the deposit and senior unsecured debt ratings of A, the subordinated debt rating of A-, and the short-term deposit and debt ratings of K1 for its subsidiary, Wilmington Savings Fund Society, FSB.
  • The Outlook for all long-term ratings is Stable.
  • Click here to view the report.

KBRA Assigns Preliminary Ratings to RRE 16 Loan Management DAC

Retrieved on: 
Friday, September 1, 2023
Banking, Professional Services, Finance, RRE, LLP, Note, CLO, B-2, Class, KBRA, X class, Disclosure, C-1, RRAM, Lisp (programming language), C-2, European, ESG, Policy, Security (finance), Risk management, Telescopic sight

KBRA UK (KBRA) assigns preliminary ratings to eight classes of notes and one of loans issued by RRE 16 Loan Management DAC, a cash flow collateralised loan obligation (CLO) backed primarily by a diversified portfolio of Euro-denominated corporate loans.

Key Points: 
  • KBRA UK (KBRA) assigns preliminary ratings to eight classes of notes and one of loans issued by RRE 16 Loan Management DAC, a cash flow collateralised loan obligation (CLO) backed primarily by a diversified portfolio of Euro-denominated corporate loans.
  • RRE 16 Loan Management DAC is managed by Redding Ridge Asset Management (UK) LLP (“RRAM UK” or the “collateral manager”).
  • The ratings reflect initial credit enhancement levels, coverage tests including par value and interest coverage tests, excess spread, and a reinvestment overcollateralisation test.
  • The collateral in RRE 16 Loan Management DAC will mainly consist of broadly syndicated leveraged loans and bonds issued by corporate obligors diversified across sectors.

KBRA Assigns Ratings to GS Mortgage-Backed Securities Trust 2023-PJ4 (GSMBS 2023-PJ4)

Retrieved on: 
Thursday, August 31, 2023
Professional Services, Finance, KBRA, GS, CLTV, LTV, Documentation, WA, Telescopic sight

KBRA assigns ratings to 44 classes of mortgage pass-through notes from GS Mortgage-Backed Securities Trust 2023-PJ4 (GSMBS 2023-PJ4).

Key Points: 
  • KBRA assigns ratings to 44 classes of mortgage pass-through notes from GS Mortgage-Backed Securities Trust 2023-PJ4 (GSMBS 2023-PJ4).
  • The transaction is backed by primarily prime jumbo mortgages with an aggregate principal balance of approximately $333.4 million as of the cut-off date.
  • The pool comprises 100% first-lien, fixed rate residential mortgage loans as of the August 1, 2023 cut-off date.
  • The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV and WA original CLTV of 72.6%.

KBRA Assigns Preliminary Rating to Bumper NL 2023-1 B.V.

Retrieved on: 
Thursday, August 31, 2023
Other Professional Services, Professional Services, Finance, KBRA, United Kingdom, ABS, LPC, SME, Renting, Telescopic sight

KBRA Europe (KBRA) assigns a preliminary rating to the Class A notes issued by Bumper NL 2023-1 B.V., a Dutch operating auto lease transaction.

Key Points: 
  • KBRA Europe (KBRA) assigns a preliminary rating to the Class A notes issued by Bumper NL 2023-1 B.V., a Dutch operating auto lease transaction.
  • Bumper NL 2023-1 will be collateralised by a portfolio of lease receivables and associated leased vehicles made to LPNL’s clients operating or residing in the Netherlands.
  • Bumper NL 2023-1 represents the latest public ABS securitisation for LeasePlan Nederland N.V. from LeasePlan Corporation N.V.’s (LPC) Bumper securitisation program, which has previously issued public securitisation transactions in Germany, the Netherlands, the United Kingdom, France and Belgium.
  • KBRA also considered its operational review of LeasePlan Nederland N.V. as well as a review of the transaction’s legal structure and proposed transaction documentation.

KBRA Releases Research – End of Student Loan Forbearance: Implications on Consumer Credit

Retrieved on: 
Thursday, August 31, 2023
Professional Services, Finance, KBRA, Research

KBRA releases research that assesses the expected impacts of the end of student loan forbearance on consumer credit.

Key Points: 
  • KBRA releases research that assesses the expected impacts of the end of student loan forbearance on consumer credit.
  • While KBRA expects this to act as an economic headwind to consumer credit fundamentals, we do not anticipate widespread credit softening due to the relatively healthy state of consumers as well as the backstop of assistance programs available to borrowers who are unable to resume payments.
  • Click here to view the report.

KBRA Releases Research – RMBS-Related Exposure to Hurricane Idalia

Retrieved on: 
Thursday, August 31, 2023
Banking, Professional Services, Finance, KBRA, Insurance, FEMA, Welfare, Gulf Coast of the United States, RMBS, Research, Manatee, Risk, Reinsurance

KBRA releases research in response to potential RMBS exposure of our rated universe of residential mortgage-backed securities (RMBS) to the unfolding events surrounding Hurricane Idalia, which made landfall in the Gulf Coast of Florida on August 30 as a Category 3 storm.

Key Points: 
  • KBRA releases research in response to potential RMBS exposure of our rated universe of residential mortgage-backed securities (RMBS) to the unfolding events surrounding Hurricane Idalia, which made landfall in the Gulf Coast of Florida on August 30 as a Category 3 storm.
  • KBRA’s analysis generally assumed that the most heavily affected regions from the storm are the areas with disaster declarations within the state of Florida.
  • As events continue to unfold, our thoughts are with the individuals and families affected by the hurricane.
  • Generally, KBRA’s rated RMBS show modest exposure to properties located in counties with public assistance FEMA declaration in Florida, with an average transaction exposure of 3% by current balance.

Hercules Receives a BBB+ Reaffirmed Investment Grade Corporate Rating from Kroll Bond Rating Agency, Inc.

Retrieved on: 
Thursday, August 31, 2023
Professional Services, Public Policy, Government, Small Business, Other Professional Services, Finance, Asset Management, KBRA, Growth, Capital, Risk management, BBB, NYSE, Bank

Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that Kroll Bond Rating Agency, Inc. (“KBRA”) has reaffirmed Hercules’ investment grade corporate and credit rating of BBB+.

Key Points: 
  • Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that Kroll Bond Rating Agency, Inc. (“KBRA”) has reaffirmed Hercules’ investment grade corporate and credit rating of BBB+.
  • KBRA issued a statement announcing the reaffirmation of the rating and stable outlook, as well as its underlying analysis.
  • “We are very pleased that KBRA has reaffirmed our BBB+ investment grade corporate and credit rating,” stated Seth Meyer, chief financial officer of Hercules.
  • Furthermore, the ratings are supported by the Company’s proven access to capital markets, solid earnings record over its 19-year operating history and robust risk management.

KBRA Assigns Ratings to BMO 2023-C6

Retrieved on: 
Wednesday, August 30, 2023
Banking, Professional Services, Finance, KBRA, BMO, CMBS, Fashion Valley Mall, Inland Empire, KLTV, Probability, CX, Water Street, Security (finance), Telescopic sight

KBRA is pleased to announce the assignment of ratings to 18 classes of BMO 2023-C6, a $604.4 million CMBS conduit transaction collateralized by 32 commercial mortgage loans secured by 138 properties.

Key Points: 
  • KBRA is pleased to announce the assignment of ratings to 18 classes of BMO 2023-C6, a $604.4 million CMBS conduit transaction collateralized by 32 commercial mortgage loans secured by 138 properties.
  • The collateral properties are located throughout 66 MSAs, of which the three largest are Boston (11.8%), Inland Empire (11.0%), and San Diego (8.3%).
  • KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 37.5% less than third party appraisal values.
  • The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings.

KBRA Releases Research – KBRA Insight on Private Credit: Public Sector Pensions Continue Increasing Private Credit Allocation

Retrieved on: 
Wednesday, August 30, 2023
Banking, Professional Services, Finance, Government, KBRA, Public sector, Pressure, BDC, Lisp (programming language), CDLI, CLO, Research, Investment, Prevalence, Environment, Security (finance)

Private credit offers public sector pension funds various positive attributes, including higher yields than traditional fixed income, which can provide longer-term benefits if the asset class’s credit and liquidity risks are prudently addressed.

Key Points: 
  • Private credit offers public sector pension funds various positive attributes, including higher yields than traditional fixed income, which can provide longer-term benefits if the asset class’s credit and liquidity risks are prudently addressed.
  • As such, several state pension plans have continued to add exposure to private credit, now approaching an average target allocation of nearly 6%.
  • KBRA is active in each of these areas and has an expansive view of the private credit landscape.
  • From this vantage point, this KBRA report updates our research on the trend of public sector pension funds increasing their use of private credit.