KBRA

KBRA Releases Research - CMBS Loan Performance Trends: March 2024

Retrieved on: 
Thursday, March 28, 2024
Professional Services, Finance, CMBS, WFCM, Mom, Sale, LL, KBRA, Self storage

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the March 2024 servicer reporting period.

Key Points: 
  • KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the March 2024 servicer reporting period.
  • The delinquency rate among KBRA-rated U.S. commercial mortgage-backed securities (CMBS) in March remained steady at 4.5%, up 2 basis points (bps) from February.
  • The total delinquent and specially serviced loan rate (distress rate) also remained steady at 7.5% compared to 7.47% last month.
  • In this report, KBRA provides observations across our $314.5 billion rated universe of U.S. private label CMBS including conduits, single-asset single borrower (SASB), and large loan (LL) transactions.

KBRA Assigns Long-Term Ratings of AA to Three Series of Chicago Park District General Obligation Bonds; Outlook is Positive

Retrieved on: 
Thursday, March 28, 2024
Data Analytics, Other Professional Services, Professional Services, Finance, Surety, Financial management, Chicago Park District, City, Forecasting, AA, FYE, KBRA

KBRA assigns a long-term rating of AA with a Positive Outlook to the Chicago Park District General Obligation Limited Tax Park Bonds Series 2024A; General Obligation Limited Tax Refunding Bonds, Series 2024B; and General Obligation Unlimited Tax Bonds, Series 2024E (Special Recreation Activity Alternate Revenue Source).

Key Points: 
  • KBRA assigns a long-term rating of AA with a Positive Outlook to the Chicago Park District General Obligation Limited Tax Park Bonds Series 2024A; General Obligation Limited Tax Refunding Bonds, Series 2024B; and General Obligation Unlimited Tax Bonds, Series 2024E (Special Recreation Activity Alternate Revenue Source).
  • Additionally, KBRA affirms the long-term rating of AA, and Positive Outlook, on the District’s outstanding General Obligation Bonds.
  • The rating actions reflect the following key credit considerations:
    Strong financial condition as evidenced by stable and healthy levels of operating reserves.
  • Substantial tax base with deep and diverse economy that is coterminous with the City of Chicago.

KBRA Releases Research – Fourth-Quarter 2023 Business Development Company (BDC) Ratings Compendium

Retrieved on: 
Thursday, March 28, 2024
Banking, Professional Services, Insurance, Finance, CLO, Pressure, SPV, Environment, FV, PIK, KBRA, BDC, Compendium, NII, Quarter, Growth, Federal, Bank

KBRA releases its Business Development Company Ratings Compendium, which looks at results for the quarter ended December 31, 2023, and offers a review of perpetual continuously offered non-traded BDCs as well as recent industry developments.

Key Points: 
  • KBRA releases its Business Development Company Ratings Compendium, which looks at results for the quarter ended December 31, 2023, and offers a review of perpetual continuously offered non-traded BDCs as well as recent industry developments.
  • The performance of KBRA-rated BDCs remained stable in 4Q23 with solid credit metrics, including comfortable liquidity considering near-term maturities, low non-accruals, and appropriate leverage overall.
  • KBRA will be monitoring BDC’s non-accrual rates and other signs of portfolio stress, as most underlying borrowers only began to experience the full impact of rate hikes in late 2023.
  • Growth was targeted toward perpetual-life BDCs that raised mostly retail capital and newly formed BDCs that raised significant institutional capital in 2023.

KBRA Releases ESG Research – Taskforce on Nature-Related Financial Disclosures Primer

Retrieved on: 
Wednesday, March 27, 2024
Environmental, Social and Governance (ESG), Professional Services, Finance, Nature, Risk, Organization, Research, KBRA, Task force

KBRA releases research that provides an overview of the Taskforce on Nature-Related Financial Disclosures (TNFD), with recommended disclosures spanning across physical, transition, and systemic climate factors, in alignment with global biodiversity goals.

Key Points: 
  • KBRA releases research that provides an overview of the Taskforce on Nature-Related Financial Disclosures (TNFD), with recommended disclosures spanning across physical, transition, and systemic climate factors, in alignment with global biodiversity goals.
  • Additionally, this report delves into the TNFD’s strategic importance for investors, the current status of the disclosures in the marketplace, and challenges to adoption.
  • In the evolving landscape of financial disclosures, the TNFD represents a groundbreaking initiative, offering a comprehensive framework for financial institutions to assess and articulate their impact and dependencies on nature.
  • Emphasizing the need for proactive engagement, the TNFD encourages financial services companies to prepare for nature-related risks ahead of mandatory disclosure requirements, thereby mitigating potential business instability.

KBRA Assigns Preliminary Ratings to BX 2024-BRVE

Retrieved on: 
Tuesday, March 26, 2024
Professional Services, Finance, ADR, BX, CMBS, KLTV, Methodology, RevPAR, NCF, Engineering, KBRA

KBRA announces the assignment of preliminary ratings to seven classes of BX 2024-BRVE, a CMBS single-borrower securitization.

Key Points: 
  • KBRA announces the assignment of preliminary ratings to seven classes of BX 2024-BRVE, a CMBS single-borrower securitization.
  • The collateral for the transaction is a $428.5 million floating rate, interest-only mortgage loan.
  • The loan has an initial two-year term with three, one-year extension options and requires monthly interest-only payments.
  • The resulting in-trust KBRA Loan to Value (KLTV) is 77.9%.

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

Retrieved on: 
Tuesday, March 26, 2024
Finance, Data Analytics, Professional Services, Other Professional Services, Insurance, MSR, Note, VFN, TRUST, KBRA, Government National Mortgage Association, FMC, Telescopic sight

KBRA assigns 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 participation certificates evidencing participation interests in mortgage servicing rights (MSR) on loans underlying Ginnie Mae guaranteed mortgage backed securities.

Key Points: 
  • KBRA assigns 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 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 Assigns Ratings to Provident Financial Services, Inc.

Retrieved on: 
Monday, March 25, 2024
Banking, Professional Services, Insurance, Finance, BBB, Provident Bank, Risk, NCO, ESG, Tenant, Provident, CRE, Acquisition, Capital, KBRA, Outlook, NIM, PFS, Telescopic sight

KBRA assigns a senior unsecured debt rating of BBB+, a subordinated debt rating of BBB, and a short-term debt rating of K2 to Iselin, New Jersey-based Provident Financial Services, Inc. (NYSE: PFS) ("Provident" or "the company").

Key Points: 
  • KBRA assigns a senior unsecured debt rating of BBB+, a subordinated debt rating of BBB, and a short-term debt rating of K2 to Iselin, New Jersey-based Provident Financial Services, Inc. (NYSE: PFS) ("Provident" or "the company").
  • In addition, KBRA assigns deposit and senior unsecured debt ratings of A-, a subordinated debt rating of BBB+, and short-term deposit and debt ratings of K2 to its main subsidiary, Provident Bank.
  • Provident’s ratings are supported by its well-executed banking model that has been implemented by an experienced management team, which has produced favorable long-term performance through various economic and interest rate cycles.
  • Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com .

KBRA Releases European Significant Risk Transfer Symposium 2024 Recap

Retrieved on: 
Monday, March 25, 2024
Banking, Professional Services, Finance, Transfer, SRT, Growth, IMN, KBRA

KBRA UK (KBRA) releases a recap of the IMN's Significant Risk Transfer (SRT) Symposium, held on 21 March in London.

Key Points: 
  • KBRA UK (KBRA) releases a recap of the IMN's Significant Risk Transfer (SRT) Symposium, held on 21 March in London.
  • The well-attended event highlighted the strong interest in the SRT market this year.
  • Panellists such as investors, issuers, and other interested market participants covered a broad range of topics, highlighting some of the tailwinds supporting the market, as well as challenges to maintaining this growth.
  • Click here to view the report.

KBRA Assigns Preliminary Ratings to ABPCI Direct Lending Fund ABS IV LP

Retrieved on: 
Monday, March 25, 2024
Banking, Professional Services, Finance, AllianceBernstein, Lisp (programming language), Class, KBRA

KBRA assigns preliminary ratings to three classes of notes issued by ABPCI Direct Lending Fund ABS IV LP (“ABPCI IV”), a securitization backed by a portfolio of recurring revenue loans, middle market loans, and hybrid asset-based loans.

Key Points: 
  • KBRA assigns preliminary ratings to three classes of notes issued by ABPCI Direct Lending Fund ABS IV LP (“ABPCI IV”), a securitization backed by a portfolio of recurring revenue loans, middle market loans, and hybrid asset-based loans.
  • ABPCI IV is an approximate $300.0 million securitization managed by AB Private Credit Investors LLC (“ABPCI” or the “Collateral Manager”).
  • ABPCI is an investment adviser and a subsidiary of Alliance Bernstein L.P., established in 2014.
  • ABPCI’s direct lending platform has over $25 billion in gross commitments across over 550 transactions and $16 billion of capital available for investment.

KBRA Assigns Preliminary Ratings to OBX 2024-NQM5 Trust

Retrieved on: 
Monday, March 25, 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 .