Articles from Kroll Bond Rating Agency, LLC

KBRA assigns an issuer rating of BBB to The Fortegra Group, Inc. (TFG or Fortegra) and assigns an insurance financial strength rating (IFSR) of A- to Fortegra Specialty Insurance Company. At the same time, KBRA is affirming and withdrawing the BBB issuer rating for Fortegra Financial Corporation. In addition, KBRA affirms the A- IFSRs for the key U.S. insurance subsidiaries of The Fortegra Group, Inc.: Lyndon Southern Insurance Company; Insurance Company of the South; Response Indemnity Company of California; Life of the South Insurance Company; Southern Financial Life Insurance Company; and Bankers Life of Louisiana. Finally, KBRA also affirms the BBB- ratings of Fortegra's junior subordinated debt. The Outlook for all ratings is Stable. Fortegra is a leading provider of warranty and specialty underwriting products and services. The organization is headquartered in Jacksonville, Florida and is majority owned by Tiptree Inc. (NASDAQ: TIPT).

In an 8-K filing with the Securities and Exchange Commission on May 29, 2025, Sunnova Energy Corporation (Sunnova) disclosed that it had amended its Loan Guarantee Agreement with the U.S. Department of Energy (DOE) on May 22, 2025. The amendment reduced the maximum aggregate amount of partial guarantees from $3.0 billion to $371.6 million. This is equal to the total partial guarantees previously issued for Sunnova's two solar loan ABS transactions under Project Hestia: Sunnova Hestia I Issuer, LLC, Series 2023-GRID1 and Sunnova Hestia II Issuer, LLC, Series 2024-GRID1.

KBRA assigns an 'A-' rating to the Senior Loans, 'BBB-' rating to the Mezzanine Loans and 'B-' rating to the Junior Loans (together, the "Rated Loans") issued by Keys Investor II, LLC (the "Issuer" or "SPV") legally owned and controlled by Oceanview US Holdings ("OVUSH"). The outlook on each class of Rated Loans is 'Stable'. The total issuance amount, inclusive of the Subordinated Notes, is $150.0 million, with initial advance rates of 55.5%, 73.0% and 90.0% for the Senior Loans, Mezzanine Loans, and Junior Loans, respectively.

KBRA releases research on the performance of the music asset-backed securities (ABS) sector.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the May 2025 servicer reporting period. The delinquency rate among KBRA-rated U.S. private label CMBS in May increased to 7.4% from 7.1% in April. The total delinquent plus current but specially serviced loan rate (collectively, the distress rate) increased 85 basis points (bps) to 10.9%. Office and mixed-use sectors saw significant increases to their distress rate this month due to transfers in some single-asset single borrower (SASB) loans, which are detailed in this report.

KBRA releases research discussing enterprise fiber, a growing segment of the fiber ABS universe. Since the market’s inaugural fiber ABS transaction in 2020, KBRA has rated over $14 billion in issuance from 11 issuers. While early transactions were dominated by providers of fiber-to-the-premises (FTTP), enterprise fiber providers have increasingly emerged as issuers of ABS. In this report, we compare and contrast FTTP and enterprise fiber, adding to our research in this sector.

KBRA releases research examining the differences between asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS) for data center transactions, providing insight into how these distinctions may influence an issuer’s choice of structure or an investor’s allocation decision.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-NQM10 Trust, a $623.6 million non-prime RMBS transaction. The underlying collateral, comprising 1,083 residential mortgages, is characterized by a notable concentration of alternative income documentation (92.3%) loans. Most of the loans are classified as non-qualified mortgages (Non-QM) (44.2%) or exempt (47.1%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA is pleased to announce the assignment of preliminary ratings to one class of DWIGHT 2025-FL1, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months including a 120-day ramp-up period.

KBRA assigns a long-term rating of A to the City of Joliet, IL (the "City") Waterworks and Sewerage System's (the "System") Senior Lien WIFIA Loan Phase III (19155IL) for the Alternative Water Supply Program (AWSP). KBRA also affirms the long-term rating of A for the System's existing two WIFIA loans for the AWSP. The rating outlook is Stable.

KBRA assigns preliminary ratings to 8 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2025-NQM3 (NRMLT 2025-NQM3), a $504.3 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were originated by Champions Funding, LLC (31.0%) and NewRez LLC (24.2%). In addition, all loans will be serviced by Shellpoint Mortgage Servicing, a brand of NewRez LLC.

KBRA assigns preliminary ratings to seven classes of debt issued by ABPCI Direct Lending Fund ABS III LLC, ("ABPCI III(R)") a securitization backed a portfolio of recurring revenue loans, middle market loans, and hybrid asset-backed loans.

KBRA assigns preliminary ratings to 30 classes of mortgage pass-through certificates from Provident Funding Mortgage Trust 2025-2 (PFMT 2025-2).

KBRA assigns preliminary ratings to the Series 2025-1 Class A-1-V Notes, Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2025-1 Notes) from Wireless PropCo Funding LLC (the Issuer), a communications infrastructure securitization. Concurrently, the rating of A (sf) for the Series 2024-1 Class A Notes is being published. The rating was initially assigned on May 3, 2024, on an unpublished basis, and since that time has remained stable and has not changed. KBRA re-analyzed the prior series rated by KBRA in conjunction with the issuance of the Series 2025-1 Notes and anticipates affirming the rating on the outstanding series.

KBRA assigns preliminary ratings to Applebee's Funding LLC and IHOP Funding LLC (Dine 2025-1), Series 2025-1 Class A-1 Notes and Class A-2 Notes, a whole business securitization (WBS). Dine 2025-1 represents the IHOP Funding LLC and Applebee’s Funding LLC’s (each, a Co-Issuer) sixth series issued by the master trust since 2014. In conjunction with the issuance of the Series 2025-1 Notes, KBRA anticipates affirming the ratings on the Co-Issuers’ outstanding notes. Proceeds from Series 2025-1 Notes will be used to repay outstanding amounts on the Series 2019-1 Class A-2-II Notes in full, repay the Series 2022-1 Class A-1 Notes, and pay transaction fees and expenses.

KBRA assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to Elmira, NY-based Chemung Financial Corporation (NASDAQ: CHMG) ("the company"). In addition, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 to its main subsidiary, Chemung Canal Trust Company. The Outlook for all long-term ratings is Stable.

KBRA releases a recap of the 2025 Mortgage Policy Summit on May 20 at the National Press Club in Washington, D.C. The event was co-hosted by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR). The summit’s theme was “From Policy to Practice—The Evolution of Mortgage Oversight.” Panel discussions covered a range of topics, including regulatory developments, the rising cost of homeowners insurance, the use of technology in compliance and supervision, and other key issues. Keynote speakers included U.S. Congressman Mike Flood (R-NE) and Housing and Urban Development (HUD) Secretary Scott Turner.

KBRA announces the assignment of preliminary ratings to five classes of 1345 2025-AOA, a CMBS single-borrower securitization. The collateral for the transaction is a $650.0 million portion of an $850.0 million non-recourse, first lien mortgage loan. The whole loan also includes a $200.0 million future funding companion loan. The floating-rate, interest-only loan has an initial term of two years and allows three one-year extension options. The loan is secured by the borrower’s fee simple and leasehold interest in 1345 Avenue of the Americas, a 50-story, Class-A office tower containing 2.0 million sf. The building is located along Sixth Avenue between West 54th and 55th Streets in the Midtown neighborhood of New York City’s borough of Manhattan. As of June 2025, the property was 92.1% leased to over 25 tenants. The five largest tenants by base rent consist of Paul Weiss (42.6% of base rent), Allianz (12.6%), Intercontinental Exchange (6.3%), Fortress (5.7%), and Global Infrastructure (4.7%). Together, these top five tenants account for 71.9% of base rent and 63.2% of sf.

KBRA announces the assignment of preliminary ratings to four classes of BX 2025-LUNR, a CMBS single-borrower securitization. The collateral for the transaction is a $1.0 billion floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrowers’ fee simple interests in 59 primarily industrial assets. In total, the portfolio contains 11.6 million sf and the properties are located across 13 states, the five largest of which are California (29.5%), Florida (15.7%), Indiana (12.0%), Ohio (7.9%), and Georgia (7.7%). As of April 2025, the portfolio was 96.2% leased to over 145 unique tenants.

KBRA releases research examining moderating April retail sales and employment gains as uncertainty surrounding trade policy contributed to cautious consumer behavior and market volatility.

KBRA assigns ratings to two classes of mortgage-backed notes from FASST 2025-PC2, a $215.1 million reverse mortgage transaction. The transaction collateral is comprised of seasoned jumbo “proprietary” reverse mortgage loans that were called from two previous securitization transactions sponsored by Finance of America Reverse LLC, proprietary reverse mortgage loans that were recently originated and additional participation interests that were not previously securitized. The weighted average loan age of the pool is 38 months through the cut-off date.

KBRA assigns preliminary ratings to eight classes of mortgage pass-through notes from GCAT 2025-NQM2 Trust, a $459.5 million non-prime RMBS transaction. The underlying collateral, comprising 810 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. Borrowers in the subject pool possess a non-zero WA original credit score of 752 and exhibit modest equity in each mortgaged property, with WA LTV and combined LTV (CLTV) ratios of 69.3% and 69.3%, respectively.

KBRA assigns ratings to nine serial bonds and one term bond issued by New York State Energy Research and Development Authority Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds, Series 2025A ("NYSERDA 2025A”), a $60.0 million asset-backed securitization collateralized by residential solar loans and home improvement loans originated by New York State Energy Research and Development Authority (“NYSERDA” or the “Authority”). The serial bonds have maturity dates ranging from 2026 through 2034 and the term bond matures in 2040. The NYSERDA 2025A Bonds are not guaranteed by NYSERDA and are non-recourse. The transaction is structured with all bonds supported by overall enhancement of 47.19% (overcollateralization plus amounts deposited into the reserve account).

KBRA assigns a long-term rating of A- to the City of Chicago, IL: General Obligation Bonds, Series 2025A; General Obligation Bonds, Series 2025B; General Obligation Bonds, Series 2025C; General Obligation Bonds, Taxable Series 2025D; General Obligation Bonds, Series 2025E; General Obligation Bonds, Series 2025F (Housing and Economic Development Projects); and, General Obligation Bonds, Taxable Series 2025G (Housing and Economic Development Projects). KBRA additionally affirms the long-term rating of A- for the City's outstanding General Obligation Bonds. The rating Outlook remains Stable.

KBRA assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to Peoples Financial Services Corp. (NASDAQ: PFIS)("Peoples" or “the company”). Additionally, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 to its subsidiary, Peoples Security Bank and Trust Company. The Outlook for all long-term ratings is Stable.

KBRA assigns a senior unsecured debt rating of A-, a subordinated debt rating of BBB+, a preferred stock rating of BBB, and a short-term debt rating of K2 to Rosemont, Illinois-based Wintrust Financial Corporation (NASDAQ: WTFC) (“the company”). KBRA also assigns deposit and senior unsecured debt ratings of A and short-term deposit and debt ratings of K1 to all 16 of WTFC's bank subsidiaries: Lake Forest Bank & Trust Company, N.A., Barrington Bank & Trust Company, N.A., Wintrust Bank, N.A., Libertyville Bank & Trust Company, N.A., Northbrook Bank & Trust Company, N.A., Village Bank & Trust, N.A., Wheaton Bank & Trust Company, N.A., State Bank of the Lakes, N.A., Crystal Lake Bank & Trust Company, N.A., Schaumburg Bank & Trust Company, N.A., Beverly Bank & Trust Company, N.A., Old Plank Trail Community Bank, N.A., Hinsdale Bank & Trust Company, N.A., St. Charles Bank & Trust Company, N.A., Town Bank, N.A., and Macatawa Bank, N.A. The Outlook for all long-term ratings is Stable.

KBRA assigns preliminary ratings to 11 classes of mortgage pass-through notes from J.P. Morgan Mortgage Trust 2025-5MPR (JPMMT 2025-5MPR). The pool comprises 306 first-lien, fixed rate residential mortgage loans with an aggregate principal balance of $405.3 million as of the cut-off date. The pool includes both non-agency (88.4%) and agency-eligible (11.6%) loans. The weighted average original credit score is 765, which is well within the prime mortgage range.

KBRA releases research on the potential impacts of tariffs on the aviation asset-backed securities (ABS) sector.

KBRA releases its latest 12 Things in Credit report, highlighting timely credit market themes drawn from our weekly podcast, 3 Things in Credit, hosted by KBRA’s Chief Strategist, Van Hesser. Among the wide-ranging topics Van discusses in this issue are the strength of consumer spending, where the labor market might crack, and the broader implications of Walmart’s outlook.

KBRA assigns preliminary ratings to four classes of notes issued by Stream Innovations 2025-1 Issuer Trust (“STRE 2025-1”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements. The ratings reflect the initial credit enhancement levels ranging from 24.10% for the Class A notes to 3.20% for the Class D notes. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account funded at closing, and excess spread.

KBRA assigns preliminary ratings to six classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2025-6 (AOMT 2025-6), a $349.7 million non-prime RMBS transaction. The underlying collateral, comprised of 729 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. All the loans are either classified as non-qualified mortgages (48.5%) or exempt (51.5%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Emporium TPO and Angel Oak Mortgage Solutions originated 19.0% and 17.2% of the pool respectively, with no other originator comprising over 10% of the collateral.

KBRA assigns preliminary ratings to 66 classes of mortgage pass-through certificates from Citigroup Mortgage Loan Trust 2025-3 (CMLTI 2025-3), a prime residential mortgage-backed securities transaction collateralized by owner occupied primary and secondary properties. The underlying pool consists of 365 fixed-rate mortgages (FRMs) with an aggregate principal balance of approximately $323.7 million as of the cut-off date on May 1, 2025 and includes both non-agency (61.4%) and agency-eligible (38.6%) loans. 41.7% of the loans were originated by PennyMac Loan Services, LLC and 52.2% of the loans will be serviced by Fay Servicing, LLC.

KBRA assigns a long-term rating of AA to the Metropolitan Government of Nashville and Davidson County's (TN; the "Metropolitan Government") Water and Sewer Revenue Refunding and Improvement Bonds, Series 2025. Additionally, KBRA affirms the long-term rating of AA for the Metropolitan Government's Water and Sewer System WIFIA Loan for Process Advancements at Omohundro and K.R. Harrington Water Treatment Plant Projects (WIFIA ID - N20115TN). The rating outlook is Stable.

KBRA assigns a preliminary rating of "BBB” with Stable Outlook to surplus notes (“Notes”) to be issued by Clear Blue Specialty Insurance Company (CBSIC) (KBRA Insurance Financial Strength Rating: A-/Stable). As surplus notes, the Notes are deeply subordinated and payments thereon are subject to the prior approval of the Texas Department of Insurance. If any payments are not approved, the payment will be extended until approval is given. Interest will continue to accrue on any unpaid principal but interest will not accrue on unpaid interest. The surplus notes are being issued to support growth in the company’s business.

KBRA assigns preliminary ratings to notes issued RFS Asset Securitization V LLC (the “Issuer”). RFS Asset Securitization V LLC will issue five classes of Series 2025-1 Notes totaling $130 million initially.

KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of Benchmark 2025-V15, a $733.2 million CMBS conduit transaction collateralized by 29 commercial mortgage loans secured by 44 properties.

KBRA affirms the senior unsecured debt rating of BBB, the subordinated debt rating of BBB-, and the short-term debt rating of K3 for Terrell, Texas-based The ANB Corporation (“the company” or “ANB”). Additionally, KBRA affirms the deposit and senior unsecured debt ratings of BBB+, the subordinated debt rating of BBB, and the short-term deposit and debt ratings of K2 for the lead subsidiary, The American National Bank of Texas ("the bank"). The Outlook for all long-term ratings is Negative.

KBRA releases its first-quarter 2025 U.S. Bank Compendium, providing the latest view of the U.S. banking industry and analysis of 1Q25 results for U.S. banks with KBRA ratings.

KBRA, a global full-service credit rating agency, is pleased to announce that it was named ABS Rating Agency of the Year at GlobalCapital’s U.S. Securitization Awards 2025. The recognition was presented at an awards ceremony held on May 15 in New York.

KBRA assigns preliminary ratings to nine classes of notes issued by Pagaya Point of Sale Holdings Grantor Trust 2025-1 and Pagaya Point of Sale Holdings Trust 2025-1 (collectively “POSH 2025-1”), an point-of-sale unsecured consumer loan ABS transaction. POSH 2025-1 has initial hard credit enhancement levels of 28.42% for the Class A Notes to 1.77% for the Class F Notes. Credit enhancement is comprised of overcollateralization, subordination (except for the Class F Notes), a cash reserve account funded at closing, and excess spread.

KBRA is pleased to announce the assignment of preliminary ratings to 16 classes of BMO 2025-C12, a $640.8 million CMBS conduit transaction collateralized by 36 commercial mortgage loans secured by 80 properties. The collateral properties are located throughout 30 MSAs, of which the three largest are New York (18.4% of pool balance), Dallas - Fort Worth (10.5%) and Portland (10.0%). The pool has exposure to most major property types, with six types representing more than 10.0% of the pool balance: retail (35.7%), office (14.1%), mixed-use (13.0%), multifamily (12.3%), self storage (12.1%), and other (10.0%). The loans have in-trust principal balances ranging from $2.7 million to $64.0 million for the largest loan in the pool, Washington Square (10.0%), a 1.0 million sf portion of a 1.2 million sf, super-regional mall located in Portland, Oregon. The five largest loans, which also include 32 Old Slip - Leased Fee (10.0%), La Gran Plaza (10.0%), Dadeland Centre I & II (8.0%), and Cape Cod Mall (6.9%), represent 44.8% of the initial pool balance, while the top 10 loans represent 63.6%.

KBRA assigns preliminary ratings to two classes of notes issued by SUA 2025-1 LLC (SUA 2025-1), a $133.3 million tri-servicer property tax lien securitization between American Tax Lien (the Master Servicer), LLC, Sower Tax Lien Fund I, LLC (Sower), and US Assets, LLC (US Assets and, each, an Originator). SUA 2025-1 represents each of the Originator’s first tax lien ABS securitization. Proceeds from the Notes will be used to acquire a portfolio of 16,751 property tax lien assets from municipalities within eight states, including Illinois (29.5%), Nebraska (25.8%), and Louisiana (20.0%), with a redemptive value of approximately $114.8 million (the Initial Tax Liens) and a weighted average original lien rate of 11.6%.

KBRA assigns preliminary ratings to four classes of notes issued by Veros Auto Receivables Trust 2025-1 (“VEROS 2025-1”), an auto loan ABS transaction.

KBRA assigns preliminary ratings to 72 classes of mortgage-backed securities from Oceanview Mortgage Trust 2025-INV2 (BVINV 2025-2). The transaction is backed entirely by prime, investment-purpose mortgage loans. Approximately 99.7% of the loans in this pool are agency eligible. The BVINV 2025-2 pool consists of 984 first-lien, fixed rate mortgages with an aggregate principal balance of approximately $310.1 million as of the May 1, 2025 cut-off date. The pool is characterized by moderate borrower equity in each mortgaged property, as evidenced by the WA original LTV of 79.2%. The weighted average original credit score is 747, which is within the prime mortgage range.

KBRA assigns preliminary ratings to Primrose Funding, LLC (the Issuer) and Primrose Funding Sub Issuer, LLC (the Subnote Issuer and, together with the Issuer, the Issuers), Series 2025-1 Class A-1 and Class A-2 Notes (Primrose 2025-1), a whole business securitization (WBS). Primrose 2025-1 represents the sixth securitization issued by Primrose Funding, LLC and/or the Subnote Issuer, following the establishment of the master trust in 2019. In conjunction with the issuance of the Series 2025-1, KBRA anticipates affirming and withdrawing the ratings on the Issuer’s outstanding notes.

KBRA assigns a long-term rating of AAA to the Massachusetts Bay Transportation Authority Senior Sales Tax Bonds, 2025 Series A and Senior Sales Tax Bonds, 2025 Series B. KBRA additionally affirms the long-term rating of AAA for the Authority's outstanding Senior Sales Tax Bonds and AA+ for the Authority's Subordinated Sales Tax Bonds (USDOT Loan). The rating Outlook is Stable.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-NQM8 Trust, a $595.6 million non-prime RMBS transaction. The underlying collateral, comprising 1,099 residential mortgages, is characterized by a notable concentration of alternative income documentation (85.7%) loans. A majority of the loans are classified as non-qualified mortgages (Non-QM) (45.0%) or exempt (44.3%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA assigns a long-term rating of AA+ to the City of Fort Worth, TX General Purpose Bonds, Series 2025 and Tax Notes, Series 2025. Concurrently, the long-term rating of AA+ is affirmed on the City's outstanding General Purpose Bonds, Tax Notes, and Combination Tax and Revenue Certificates of Obligation. The Outlook is Stable.

KBRA assigns preliminary ratings to four classes of notes issued by SunStrong Issuer 2025-A, LLC ("SunStrong 2025-A"), a $253.841 million asset-backed securitization collateralized by a pool of residential solar loans originated via the SunPower Corporation platform. The solar loans were subsequently sold to SunStrong Capital Holdings, LLC ("SunStrong Capital") and are currently managed by SunStrong Management, LLC ("SunStrong Management"), a separately capitalized but affiliated entity to SunStrong Capital. Both entities are owned by Hannon Armstrong Sustainable Infrastructure Capital Inc and certain funds managed by GoodFinch Management, LLC. While SunStrong Capital was previously majority owned by SunPower Corporation, there is currently no affiliation between SunPower Corporation and SunStrong Capital nor SunStrong Management.

KBRA assigns a preliminary rating to the Series A Notes issued by SLAM 2025-1 Limited and SLAM 2025-1 LLC (together, SLAM 2025-1), an aviation ABS transaction. SLAM 2025-1 represents the fourth aviation ABS transaction sponsored by SKY Aero Management Limited and SKY Leasing, LLC (the Company). The Company is comprised of 40 individuals operating out of five offices with headquarters in San Francisco, California. As of March 31, 2025, the Company had 112 aircraft under management valued at over $5.0 billion.

KBRA affirms the senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2 for Leawood, Kansas based First Busey Corporation (NASDAQ: BUSE) (“the company”). In addition, KBRA assigns a preferred shares rating of BBB- to BUSE. KBRA also affirms the deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for its subsidiary, Busey Bank. The Outlook for all long-term ratings is Stable.

KBRA releases research following the recent assignment of a negative sector outlook to the U.S. airport sector by Moody’s. While the announcement was largely based on current macroeconomic headwinds, KBRA believes that municipal bond investors are best served by issuer-specific credit analysis that takes into account the meaningful differences in financial, operational, and strategic profiles that distinguish individual airport issuers.

KBRA announces the assignment of preliminary ratings to five classes of ALA 2025-OANA, a CMBS single-borrower securitization. The collateral for the transaction is a $2.4 billion floating rate mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrower’s fee simple and leasehold interests in Ala Moana Center, a 2.4 million sf outdoor super-regional mall, as well as two adjacent office buildings known as Ala Moana Building and Ala Moana Pacific Center, which total approximately 360,000 sf combined. The collateral is situated on a 61.2-acre parcel along the Pacific Ocean, and is approximately two miles from the Honolulu CBD, approximately one mile from Waikiki, and approximately seven miles from Honolulu International Airport. As of February 2025, the collateral is 92.7% occupied.

KBRA assigns preliminary ratings to two classes of notes issued by Drive Auto Receivables Trust 2025-S1 ("DRIVE 2025-S1"), a re-securitization of the certificate (the "Underlying Certificate") issued from the Drive Auto Receivables Trust 2021-3 auto loan transaction ("DRIVE 2021-3" or the "Underlying Securitization Transaction").

KBRA releases research that provides a close examination of feeder fund rated notes that invest in evergreen funds, which have captured an increasing share of private credit capital in recent years. Unlike traditional closed-end funds, evergreen funds are perpetual with no fixed term. They typically permit new investors to periodically subscribe and allow existing investors to redeem their units at regular intervals, usually subject to notice periods and fund-level gates.

KBRA assigns a rating of BBB+ to Blue Owl Capital Corporation's (NYSE: OBDC or "the company") $500 million, 6.20% senior unsecured notes due July 15, 2030. The Outlook for the rating is Stable.

KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of WFCM 2025-5C4, a $581.6 million CMBS conduit transaction collateralized by 32 commercial mortgage loans secured by 84 properties.

KBRA assigns preliminary ratings to 60 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2025-S1 (SEMT 2025-S1), a prime RMBS transaction collateralized by 784 seasoned fixed-rate residential mortgage loans with an aggregate scheduled principal balance of approximately $455.8 million. Approximately 40.7% of the pool has been designated as a Qualified Mortgage (QM). Non-QM loans and loans for which ATR status could not be determined (TPR status of ATR Risk/Fail) make up 47.7% and 9.7% of pool, respectively.

KBRA assigns preliminary ratings to 27 classes of mortgage-backed notes from RCKT Mortgage Trust 2025-CES5 (RCKT 2025-CES5).

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from CROSS 2025-H4 Mortgage Trust, an RMBS transaction issued under the CROSS shelf, where Hildene in affiliation with CrossCountry Mortgage and CrossCountry Capital sponsored the transaction. The $453.9 million transaction is collateralized by a pool of 895 residential mortgages originated by CCM, including a meaningful concentration of collateral that KBRA considers to be “non-prime”, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 84.5% and 15.5% of the pool, respectively.

KBRA assigns preliminary ratings to four classes of notes issued by Cherry Securitization Trust 2025-1 ("CHRY 2025-1"), a consumer loan retail installment contract ABS transaction. The preliminary ratings reflect initial credit enhancement levels ranging from 23.37% for the Class A notes to 3.62% for the Class D notes. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account funded at closing, and excess spread.

KBRA assigns preliminary ratings to eight classes of mortgage-backed notes from Santander Mortgage Asset Receivable Trust 2025-NQM2 (SAN 2025-NQM2), a $288.6 million non-prime RMBS transaction. The underlying collateral, comprised of 679 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. Approximately 58.4% of the loans were exempt from the ATR/QM rule due to being originated for business purposes or by a CDFI. The remaining portions of the pool were categorized as QM: Safe Harbor (APOR) (6.0%), non-qualified mortgages (Non-QM) under the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule (34.6%) or categorized as QM: Rebuttable Presumption (APOR) (0.9%). In addition, 1.1% of the pool are closed-end loans with second lien priority underwritten with various documentation levels.

KBRA assigns preliminary ratings to four classes of notes (the “Notes”) issued by NFAS3 LLC (the “Issuer”).

KBRA assigns preliminary ratings to five classes of notes issued by American Credit Acceptance Receivables Trust 2025-2 (“ACAR 2025-2”), an ABS collateralized by a pool of auto loans.

KBRA assigns preliminary ratings to two classes of notes issued by RAM 2025-1, LLC (RAM 2025-1), a $130.55 million property tax lien ABS transaction. Proceeds from the Notes will be used to acquire a portfolio of 9,632 property tax lien assets from municipalities within seven states, including Florida (34.1%), New Jersey (33.9%), and South Carolina (11.2%), with a redemptive value of approximately $83.1 million (the Initial Tax Liens) and a weighted average original lien rate of 6.7%. RAM 2025-1 is a partially pre-funded transaction where the Notes are initially supported by $51.0 million deposited into two prefunding accounts (approximately 39.1% of the initial Note balance) that will be used to purchase tax liens subject to certain eligibility criteria.

KBRA releases research examining solar loan ABS performance across its history. The first residential solar loan-backed securitization came to market in early 2016, and nearly a decade later, the sector has grown into a mainstream ABS product. Solar loan ABS offers longer-duration exposure compared to most other consumer ABS asset classes and is broadly viewed as compatible with environmental, social, and governance (ESG) goals, with the underlying loans enabling homeowners to adopt renewable energy and hedge against rising utility bills. However, the sector currently faces several headwinds, including the financial viability of certain originator/servicers, heightened regulatory scrutiny, and weaker-than-expected credit performance in some recently issued deals. The report examines the current landscape of the residential solar ABS market, highlighting trends in credit performance, new issue supply, originator trends, and ratings activity.

KBRA assigns preliminary ratings to Series 2025-1, Series 2025-2 and Series 2025-3 Notes (Consolidated 2025-1, 2025-2 and 2025-3 Notes, the Series 2025-1, 2025-2 and 2025-3 Notes or the Notes), from Consolidated Communications, LLC and Fidium Fiber Finance Holdco LLC (the Co-Issuers), a communications infrastructure securitization (CIS) that is primarily collateralized by fiber-to-the-premises (FTTP) networks and related contracts.

KBRA assigns preliminary ratings to six classes of mortgage pass-through notes from Verus Securitization Trust 2025-4 (VERUS 2025-4), a $518.0 million non-prime RMBS transaction. The underlying collateral comprises 1,014 residential mortgages and is characterized by a significant concentration of loans underwritten using alternative income documentation. Borrowers in the subject pool possess a non-zero WA original credit score of 741 and exhibit moderate equity in each mortgaged property, with an original combined LTV (CLTV) ratio of 70.0%. Approximately 42.9% of the loans were exempt from the ATR/QM rule due to being originated for business purposes or underwritten by a CDFI. The remaining portions of the pool were categorized as QM: Safe Harbor (32.6%), non-qualified mortgages (Non-QM) under the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule (20.6%) or categorized as QM: Rebuttable Presumption (3.9%).

KBRA assigns preliminary ratings to three classes of notes issued by Oxford Finance Credit Fund III 2025-A LP (the Issuer or Oxford 2025-A). Oxford 2025-A is primarily secured by a pool of senior secured loans co-originated by Oxford Finance Credit Fund III LP (the Fund) alongside Oxford Finance LLC (Oxford or an Originator, and together with the Fund, the Originators), or originated by Oxford and acquired by the Fund from Oxford, to companies operating in the healthcare industry and adjacent markets and serviced by Oxford Finance Advisors, LLC (the Servicer or Oxford Finance Advisors), a subsidiary of Oxford. The Fund will be retaining the equity in Oxford 2025-A.

KBRA releases the April 2025 issue of CMBS Trend Watch.

KBRA releases a recap of the annual CLO Conference hosted by the Loan Syndications & Trading Association (LSTA) and DealCatalyst, which took place at the Marriott Marquis Hotel in New York on April 28-29. With up to 1,700 attendees, the conference comes on the heels of record U.S. CLO issuance of around $200 billion in 2024. This strong pace continued in first-quarter (Q1) 2025 with approximately $45 billion in total volume, as issuers pushed spreads to multiyear tights. The evolving U.S. tariff policy underscored virtually every panel and conversation, with dealers and other participants generally adopting a “wait-and-see” approach, as uncertainty has already pushed CLO spreads wider, clouding the issuance pace.

KBRA releases research exploring the potential impact of trade tensions and tariffs on the aviation industry. The aviation industry—a critical pillar of global connectivity and economic growth—is facing significant challenges due to the Trump administration’s tariff policies implemented in early 2025. These tariffs, targeting major trading partners such as Canada (25%), Mexico (25%), and China (up to 145%), along with a baseline 10% levy on most other countries, have introduced unprecedented uncertainty and cost pressures across the aviation value chain. This KBRA report examines the multifaceted impact on airlines, original equipment manufacturers (OEM), and aircraft lessors, drawing on recent developments and industry responses.

KBRA assigns preliminary ratings to 60 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2025-5 (SEMT 2025-5), a $648.8 million prime RMBS transaction. The pool is comprised of 526 first-lien, fully amortizing fixed rate mortgages with 20-year and 30-year maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 780 and moderate borrower equity, with a WA original LTV of 69.5% and WA original CLTV of 69.5%.

KBRA assigns preliminary ratings to 62 classes of mortgage backed notes from PMT Loan Trust 2025-INV5 (PMTLT 2025-INV5), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2025-INV5 comprises 945 fixed-rate mortgages (FRMs) with an aggregate principal balance of $346.6 million as of the May 1, 2025 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (81.2%) and second homes (18.8%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 74.5%. The weighted average original credit score is 774, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to 62 classes of mortgage pass-through notes from OBX 2025-J1 Trust, a $328.6 million prime RMBS transaction. The underlying collateral, comprising 276 fixed-rate, fully amortizing loans is characterized by moderate borrower equity, as evidenced by the WA original LTV of 71.9%, and has a WA original credit score of 776.