Bond

KBRA Assigns Preliminary Ratings to MSC 2021-L7

Thursday, September 23, 2021 - 8:28pm

Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 39 classes of MSC 2021-L7, a $921.2 million CMBS conduit transaction collateralized by 60 commercial mortgage loans secured by 102 properties.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 39 classes of MSC 2021-L7, a $921.2 million CMBS conduit transaction collateralized by 60 commercial mortgage loans secured by 102 properties.
  • The collateral properties are located throughout 21 MSAs, of which the three largest are New York (24.7%), Houston (13.8%), and Phoenix (8.7%).
  • KBRA capitalization rates were applied to each assets KNCF to derive values that were, on an aggregate basis, 43.5% less than third party appraisal values.
  • To access ratings and relevant documents, click here .

KBRA Assigns Preliminary Ratings to LendingPoint 2021-B Asset Securitization Trust

Thursday, September 23, 2021 - 7:47pm

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by LendingPoint 2021-B Asset Securitization Trust (LP 2021-B), a consumer loan ABS transaction.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by LendingPoint 2021-B Asset Securitization Trust (LP 2021-B), a consumer loan ABS transaction.
  • The transaction includes a three-month prefunding period which could represent up to 40% of the total receivables balance.
  • Founded in July 2014, LendingPoint is a wholly owned subsidiary of LendingPoint Holdings LLC, which is a wholly owned subsidiary of LendingPoint Consolidated, Inc.
  • KBRA considered its operational review of LendingPoint, as well as periodic update calls with the Company.

KBRA Releases Research – Insurance: KBRA’s Framework for Incorporating ESG Risk Management in Credit Ratings

Thursday, September 23, 2021 - 3:00pm

Kroll Bond Rating Agency (KBRA) releases research on our approach to incorporating environmental, social, and governance (ESG) factors in the credit rating process for (re)insurance companies.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases research on our approach to incorporating environmental, social, and governance (ESG) factors in the credit rating process for (re)insurance companies.
  • The diversity of organizational structures, regulatory regimes, liability exposures, and distribution channels across the (re)insurance industry will likely translate into a range of ESG touchpoints that vary widely by sector and market.
  • Consistent with our overall rating framework, KBRA will consider the credit impact of ESG factors within the unique business context of each (re)insurer.
  • For social factors, KBRA will focus on how management has identified its stakeholders, assessed potentially competing interests, and calibrated its approach within the context of the (re)insurers overall corporate strategy.

KBRA Assigns Preliminary Ratings to Aqua Finance Trust 2021-A

Thursday, September 23, 2021 - 2:57pm

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Aqua Finance Trust 2021-A (Aqua 2021-A), a $759.5 million consumer loan asset-backed securities transaction.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Aqua Finance Trust 2021-A (Aqua 2021-A), a $759.5 million consumer loan asset-backed securities transaction.
  • The preliminary ratings reflect initial credit enhancement levels ranging from 23.10% for the Class A notes to 2.50% for the Class C notes.
  • This securitization represents the fourth public term securitization for Aqua Finance, Inc. (Aqua or the Company) and its affiliates.
  • Aqua was founded in 1985 and incorporated in January 1988, and is a consumer finance company operating in all 50 states.

KBRA Releases Research – Midstream Energy Companies: KBRA’s Framework for Incorporating ESG Risk Management in Credit Ratings

Thursday, September 23, 2021 - 2:54pm

Kroll Bond Rating Agency (KBRA) releases research on our general approach to incorporating environmental, social, and governance (ESG) factors in the credit rating process across corporate, financial, and government (CFG) ratings, which we describe as ESG Management.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases research on our general approach to incorporating environmental, social, and governance (ESG) factors in the credit rating process across corporate, financial, and government (CFG) ratings, which we describe as ESG Management.
  • While our previous publication provided a broad overview of KBRAs ESG Management approach (summarized below), this research report focuses on the potential influence of ESG topics on KBRAs analysis of midstream energy companies.
  • KBRA believes that ESG issues are best examined through the lens of active risk management.
  • Under our ESG Management framework, we seek to understand how an issuer or transaction identifies, addresses, and mitigates relevant ESG risks or capitalizes on ESG opportunities.

KBRA Releases Auto Loan ABS Indices for August 2021

Monday, September 20, 2021 - 10:10pm

Kroll Bond Rating Agency (KBRA) releases its auto loan ABS indices for August 2021.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases its auto loan ABS indices for August 2021.
  • August remittance reports showed softening credit performance across securitized auto loan pools during the July collection period, likely driven more by seasonality than a change in fundamentals.
  • Early-stage delinquencies (30-59 days past due) in KBRAs Prime Auto Loan Index increased 5 basis points (bps) month-over-month (MoM) to 0.82%, while late-stage delinquencies (60+ days past due) rose 1 bp to 0.27%.
  • Meanwhile, early- and late-stage delinquencies in KBRAs Non-Prime Auto Loan Index were up 9 bps and 10 bps MoM, respectively, at 6.77% and 3.53%.

KBRA Assigns Preliminary Ratings to BANK 2021-BNK36

Monday, September 20, 2021 - 6:18pm

Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 38 classes of BANK 2021-BNK36, a $1.3 billion CMBS conduit transaction collateralized by 92 commercial mortgage loans secured by 128 properties.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 38 classes of BANK 2021-BNK36, a $1.3 billion CMBS conduit transaction collateralized by 92 commercial mortgage loans secured by 128 properties.
  • The collateral properties are located throughout 36 MSAs, of which the three largest are Chicago (14.3%), New York (10.9%), Los Angeles (6.9%).
  • KBRA capitalization rates were applied to each assets KNCF to derive values that were, on an aggregate basis, 44.2% less than third party appraisal values.
  • To access ratings and relevant documents, click here .

KBRA Assigns Preliminary Ratings to RRE 9 Loan Management DAC

Friday, September 17, 2021 - 6:49pm

Kroll Bond Rating Agency UK Limited (KBRA) assigns preliminary ratings to five classes of notes issued by RRE 9 Loan Management DAC, a cash flow collateralised loan obligation (CLO) backed primarily by a diversified portfolio of Euro-denominated corporate loans and bonds.

Key Points: 
  • Kroll Bond Rating Agency UK Limited (KBRA) assigns preliminary ratings to five classes of notes issued by RRE 9 Loan Management DAC, a cash flow collateralised loan obligation (CLO) backed primarily by a diversified portfolio of Euro-denominated corporate loans and bonds.
  • RRE 9 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 9 Loan Management DAC will mainly consist of broadly syndicated leveraged loans and bonds issued by corporate obligors diversified across sectors.

KBRA Releases RMBS Credit Indices (KCI) for August 2021

Friday, September 17, 2021 - 3:59pm

Kroll Bond Rating Agency (KBRA) releases its RMBS Credit Indices (KCI) for August 2021.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) releases its RMBS Credit Indices (KCI) for August 2021.
  • The indices track early-, mid-, and late-stage delinquencies, observed modifications, prepayment speeds, and other performance metrics across four major RMBS 2.0 subsectors.
  • KBRA includes modified (%) in its RMBS KCIs, which represents the portion of loans for each deal that Intex reports as having a modification or suspected modification.
  • KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada.

KBRA Assigns Preliminary Ratings to Accelerated 2021-1H LLC

Thursday, September 16, 2021 - 7:49pm

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Accelerated 2021-1H LLC (AALLC 2021-1H), a timeshare loan asset-backed securities transaction.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Accelerated 2021-1H LLC (AALLC 2021-1H), a timeshare loan asset-backed securities transaction.
  • The transaction has initial hard credit enhancement levels ranging from 66.45% for the Class A notes to 11.00% for the Class D notes.
  • Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account and excess spread.
  • The timeshare loans were originated by Holiday Inn Club Vacations (HICV or the Company) and have been sold to OLLAF 2020-1 LLC (OLLAF).