Articles from Kroll Bond Rating Agency, LLC

KBRA assigns preliminary ratings to six classes of mortgage pass-through notes from GCAT 2025-NQM1 Trust, a $438.2 million non-prime RMBS transaction. The underlying collateral, comprising 764 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 756 and exhibit modest equity in each mortgaged property, with WA LTV and combined LTV (CLTV) ratios of 69.5% and 69.5%, respectively.

On April 23, 2025, Wellsboro, PA-based Citizens & Northern Corporation (NASDAQ: CZNC) ("C&N"), parent company of Citizens & Northern Bank, and West Milton, PA-based Susquehanna Community Financial, Inc. (OTCPK: SQCF) ("Suequehanna Community"), parent company of Susquehanna Community Bank, jointly announced that they had entered into a definitive agreement pursuant to which Susquehanna Community Financial, Inc. would merge with and into Citizens & Northern Corporation, and Susquehanna Community Bank would merge with and into Citizens & Northern Bank. The transaction, valued at $44.3 million (P/TBV: 1.3x), is an all-stock deal expected to close in 4Q25 pending regulatory approval. Under the agreement, Chris Trate, current SQCF Board Chairman, would be appointed to C&N's board of directors. In addition, Dave Runk, SQCF's CEO, would become a member of the Citizens & Northern Bank executive team as EVP and Strategic Advisor, and Jeffrey Hollenbach, SQCF's President and COO, would lead the Susquehanna market as Region President.

KBRA assigns preliminary ratings to four classes of notes (the “Notes”) issued by Kapitus Asset Securitization V LLC, Series 2025-1.

KBRA releases a report examining the stability and transition patterns of our ratings over 1-year, 3-year, 5-year, and lifetime time horizons between 2011 and 2024. The ratings universe used in this study includes both published and unpublished long-term credit ratings (LTCR) assigned across all geographical regions, which are assigned to issuers, transactions, and securities using the same rating scale.

KBRA assigns a preliminary rating to the Class A Notes issued by MPOWER Education Trust 2025-A (“MPOWER 2025-A”), an asset-backed securitization collateralized by private education loans made to international students attending schools in the United States. MPOWER 2025-A is the second securitization of MPOWER Financing, Public Benefit Corporation (“MPOWER”). MPOWER issued its inaugural securitization in 2024. The transaction is a term ABS securitization collateralized by Education Loans originated by Bank of Lake Mills or by MPOWER under the MPOWER Private Education Loan Program.

KBRA assigns preliminary ratings to the Series 2025-2 Class A-1-V Notes, Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2025-2 Notes) from Zayo Issuer, LLC (the Issuer), a communications infrastructure securitization.

KBRA releases research that examines the potential impacts of tariffs on auto loan ABS credit fundamentals. Although the ultimate scope and breadth of changes in U.S. trade policy remains uncertain, the broad implementation of tariffs could pose headwinds to credit fundamentals across various securitized asset classes. However, auto loan ABS may enjoy some benefit—at least in the short term—as rising vehicle prices boost liquidation proceeds on repossessed vehicles, leading to higher recovery rates and lower net losses across outstanding securitized auto loan collateral pools.

KBRA assigns a long-term rating of AA+, with a Stable Outlook, to the Harris County Hospital District, TX (the "District") Limited Tax Bonds, Series 2025.

KBRA releases research examining trends across the structured credit landscape. The structured credit and collateralized loan obligation (CLO) marketplace entered the new year on the heels of record-setting issuance in 2024. Despite general economic and political uncertainty at the start of the year, ample dry powder continued to flow into the asset class, causing broadly syndicated loan (BSL) and middle market (MM) CLO AAA spreads to tighten to multiyear lows. Total U.S. CLO volume for Q1 reached approximately $45 billion as of the end of March, trailing the year-ago tally by just $3 billion. The European CLO market had its strongest Q1 ever, suggesting another record year for global issuance was in the making.

KBRA is pleased to announce the assignment of preliminary ratings to 18 classes of BMO 2025-5C10, a $628.0 million CMBS conduit transaction collateralized by 34 commercial mortgage loans secured by 67 properties. The collateral properties are located throughout 19 MSAs, of which the three largest are New York (31.5% of pool balance), North – Central New Jersey (10.9%), and San Diego (8.1%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: multifamily (22.0%), mixed-use (21.3%), hospitality (18.5%), and retail (18.4%). The loans have in-trust principal balances ranging from $3.1 million to $60.0 million for the largest loan in the pool, Marriott JFK (9.6%), an 11-story, 360-key, full-service hotel located in the Jamaica neighborhood of New York City’s borough of Queens, adjacent to the JFK International Airport. The five largest loans, which also include NJ Asden Portfolio (9.6%), 1535 Broadway (7.2%), Muse at Torrey Pines (7.2%) and Herald Center (4.9%), represent 38.4% of the initial pool balance, while the top 10 loans represent 59.5%.

KBRA assigns preliminary ratings to 8 classes of Certificates from COOPR Residential Mortgage Trust 2025-CES1 (COOPR 2025-CES1), a $310.6 million RMBS transaction, as of the cut-off date, sponsored by Nationstar Mortgage LLC d/b/a Mr. Cooper and Loan Funding Structure V LLC and consists almost entirely of 4,618 newly originated closed-end second lien mortgages (CES; 99.8%). The underlying pool is seasoned approximately one month and all loans are originated solely by Mr. Cooper. The collateral consists of fully amortizing, fixed-rate mortgages (FRMs) with predominantly 20-year (80.3%), 15-year (8.4%), 30-year (6.7%), and 10-year (4.4%) maturity terms.

KBRA releases research examining solid March retail sales and employment gains amid a less certain outlook as Trump administration tariff actions rattle both consumer sentiment and financial markets.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from Angel Oak Mortgage Trust 2025-HB1 (AOMT 2025-HB1), a $191.3 million RMBS transaction sponsored by Angel Oak Real Estate Investment Trust III (Angel Oak), consisting of first lien (9.1%) and second lien (86.2%) home equity line of credit (HELOC; 95.2% total HELOC population) loans, as well as 4.8% closed-end second (CES) loans. The underlying pool is seasoned approximately six months and comprises 1,856 loans, with Homebridge Financial Services, Inc. (Homebridge; 87.9%) and Angel Oak Mortgage Solutions LLC (Angel Oak; 11.2%) as the largest contributing originators in the transaction. The HELOC loans are structured as interest-only (IO) adjustable-rate mortgages (ARMs), nearly all of which have initial draw periods of five years. Following the IO period, most loans transition to amortization terms of either 10-years (86.8%) or 15-years (6.9%). The CES loans consist exclusively of fixed-rate mortgages (FRMs), predominantly featuring 30-year amortization terms. As of the April 1, 2025 cut-off date, the HELOC borrowers have drawn $182.2 million from a total credit limit of $227.9, reflecting a utilization rate of 79.9% for the HELOC population. If HELOC borrowers were to fully draw their available credit lines, HELOC loans would represent 96.1% of the aggregate pool.

KBRA assigns preliminary ratings to four classes of notes issued by Aqua Finance Issuer Trust 2025-A (“Aqua 2025-A”), an asset-backed securitization collateralized by marine and recreational vehicle contracts as well as home improvement contracts.

KBRA assigns preliminary ratings to seven classes of mortgage-backed certificates from Morgan Stanley Residential Mortgage Loan Trust 2025-DSC1 (MSRM 2025-DSC1; $380.0 million), the first RMBS transaction sponsored by Morgan Stanley Mortgage Capital Holdings LLC solely backed by collateral underwritten to debt-service coverage ratio (DSCR) guidelines. The underlying collateral comprising 1,242 rental property mortgages was originated by CV3 (19.9%), Hometown Equity (18.0%), and NewRez (16.9%). All the loans in the pool were categorized as exempt from the ATR/QM rule due to being originated for business purposes.

KBRA assigns preliminary ratings to seven classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2025-5 (AOMT 2025-5), a $341.5 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 (49.8%) or exempt (50.2%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Angel Oak Mortgage Solutions originated 34.1% of the pool, with no other originator comprised over 10% of the collateral.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-NQM7 Trust, a $572.4 million non-prime RMBS transaction. The underlying collateral, comprising 1,203 residential mortgages, is characterized by a notable concentration of alternative income documentation (89.7%) loans. Most of the loans are classified as non-qualified mortgages (Non-QM) (45.8%) 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 AA, Stable Outlook to University of North Texas System Board of Regents Revenue Financing System ("RFS") Refunding and Improvement Bonds Series 2025A and RFS Taxable Refunding and Improvement Bonds Series 2025B. Concurrently, KBRA assigns a AA, Stable Outlook to outstanding parity RFS Bonds previously issue by the Board on the System's behalf. RFS Obligations issued under the Master Resolution, including the Series 2025A and Taxable Series 2025B Bonds, are payable from and solely secured by Pledged Revenues of the RFS System. Pledged Revenues consist of Revenue Funds, including all unencumbered funds and balances legally available to the Board.

KBRA releases research analyzing the loan origination process, loan characteristics, ABS issuance, performance trends, and rating activity for the home improvement (HI) ABS segment of the unsecured consumer loan market.

KBRA releases research examining the impact of the ongoing tariff disputes and related trade tensions, with a focus on emerging credit challenges for the sector. Notably, KBRA observes that the primary, secondary, and tertiary effects will differ significantly based on the specific lines of business underwritten, as well as the strength of an insurer’s capitalization, risk management framework, and liquidity profile. While property and casualty (P&C) insurers—particularly those underwriting personal and commercial auto, homeowners, and property lines—face the primary impact of rising claims costs, all insurers (both life and nonlife) are vulnerable to the secondary effects of investment volatility and the tertiary impacts of shifting consumer behavior. These broader pressures stem from ongoing broader macroeconomic headwinds and the fluctuations in reinsurance availability. Overall, KBRA believes most carriers are well positioned in the near term. However, depending on the duration and severity of market volatility and tariff-related economic trends, insurers with weaker balance sheets and less robust risk management profiles may face heightened credit pressures over the medium to long term.

KBRA resolves the Watch Downgrade placed on the rating of the Department of Water and Power of the City of Los Angeles (LADWP) Power System Revenue Bonds on January 16, 2025 and assigns a long-term rating of AA to the Power System Revenue Bonds, 2025 Series A, and Power System Revenue Bonds, 2025 Series B. The rating on outstanding Power System Revenue Bonds is affirmed at AA. The Outlook is Stable.

KBRA releases a research report exploring the potential impact of trade tensions and tariffs on debt-issuing municipal entities in the U.S. These entities issue debt payable from the levy of a tax (i.e., tax-supported) or end-user fees and charges (i.e., revenue-supported).

KBRA assigns preliminary ratings to 11 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2025-3 (JPMMT 2025-3). The pool comprises 309 first-lien, fixed rate residential mortgage loans with an aggregate principal balance of $418.4 million as of the cut-off date. The pool includes both non-agency (91.4%) and agency-eligible (8.6%) loans. The weighted average original credit score is 765, which is well within the prime mortgage range.

KBRA assigns a preliminary rating to one class of notes issued by Sabal Issuer 2025-1, LLC. The transaction is collateralized by a diversified pool of 14,970 leases and power purchase agreements (PPAs) associated with residential solar photovoltaic installations (PV Systems), some of which have energy storage equipment. The total aggregate discounted solar asset balance (ADSAB) based on a discount rate of 7.5%, consisting of the discounted payments of the leases and PPAs is approximately $385.1 million. The securitization share of the ADSAB is approximately $342.2 million.

KBRA assigns preliminary ratings to 12 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-3 and Pagaya AI Debt Trust 2025-3 (collectively “PAID 2025-3”), an unsecured consumer loan ABS transaction. PAID 2025-3 has initial hard credit enhancement levels of 83.58% for the Class A-1 Notes to 4.22% 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 assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2025-CES4 (RCKT 2025-CES4).

KBRA assigns preliminary ratings to 58 classes from Connecticut Avenue Securities Trust 2025-R03 (CAS 2025-R03), a credit risk sharing transaction with a total note offering of $619,454,000. The pool is characterized by loans with original loan-to-value (LTV) ratios that are greater than 80% and less than or equal to 97%.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from CROSS 2025-H3 Mortgage Trust, an RMBS transaction issued under the CROSS shelf, where Hildene in affiliation with CrossCountry Mortgage and CrossCountry Capital sponsored the transaction. The $413.4 million transaction is collateralized by a pool of 830 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 85.2% and 14.8% of the pool, respectively.

KBRA releases a research report exploring how recent tariff escalations may impact various structured finance sectors.

KBRA assigns preliminary ratings to 8 classes of mortgage-backed certificates from Morgan Stanley Residential Mortgage Loan Trust 2025-HX1 (MSRM 2025-HX1), a $299.4 million non-prime RMBS transaction. The underlying collateral, comprising of 787 residential mortgages originated by HomeXpress Mortgage Corp., is characterized by a notable concentration of alternative income documentation (90.5%). The majority of the loans are either classified as non-qualified mortgages (Non-QM) (16.7%) or exempt (62.0%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA releases a series of three research reports that examine how tariffs, market volatility, economic uncertainty, fluctuating spreads, and other macroeconomic headwinds may impact various segments of private credit’s rated transactions, including corporate borrowers, funds, business development companies (BDC), asset managers, and middle market (MM) collateralized loan obligations (CLO).

KBRA publishes the issuer and senior unsecured debt ratings of BBB with a Stable Outlook for Fidelity Private Credit Fund ("FPCF" or "the company"). On January 31, 2025, KBRA assigned senior unsecured and issuer ratings of BBB with Stable Outlook on an unpublished basis.

KBRA assigns preliminary ratings to 60 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2025-4 (SEMT 2025-4), a $471.5 million prime RMBS transaction. The pool is comprised of 390 first-lien, fully amortizing fixed rate mortgages with 30-years maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 781 and moderate borrower equity, with a WA original LTV of 72.0% and WA original CLTV of 72.1%.

KBRA assigns issuer and senior unsecured debt ratings of BBB to HPS Corporate Capital Solutions Fund ("HCAP" or "the company"). The rating Outlook is Stable.

KBRA announces the assignment of preliminary ratings to six classes of SDAL 2025-DAL, a CMBS single-borrower securitization.

KBRA assigns a long-term rating of AA+ to the City of New York, NY Tax-Exempt General Obligation Bonds, Fiscal 2025 Series G Subseries G-1; Taxable General Obligation Bonds, Fiscal 2025 Series H; and Tax-Exempt General Obligation Bonds Fiscal 2012 Series D, Subseries D-3A. KBRA additionally affirms the long-term rating of AA+ for the City's outstanding General Obligation Bonds. The rating Outlook is Stable.

KBRA, a global full-service credit rating agency, today announced the official launch of VDR Pro—a cutting-edge virtual data room designed to simplify and secure the way issuers share documentation and manage their rating process. This strategic launch represents a major advancement in how issuers manage privately issued ratings, bringing unprecedented control, compliance, and convenience to the forefront.

KBRA assigns preliminary ratings to seven classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2025-4 (AOMT 2025-4), a $284.3 million non-prime RMBS transaction. The underlying collateral, comprised of 575 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 (60.2%) or exempt (39.8%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Angel Oak Mortgage Solutions originated 34.4% of the pool, with no other originator comprised over 10% of the collateral.

KBRA releases the March 2025 issue of CMBS Trend Watch.

KBRA assigns a long-term rating of AAA to the Los Angeles Unified School District: Election of 2024, General Obligation Bonds, US Series A (2025) (Dedicated Unlimited Ad Valorem Property Tax Bonds); Election of 2024, General Obligation Bonds, US Series B (2025) Federally Taxable (Dedicated Unlimited Ad Valorem Property Tax Bonds); and, 2025 General Obligation Refunding Bonds, Series A (Dedicated Unlimited Ad Valorem Property Tax Bonds). KBRA additionally affirms the long-term rating of AAA for the District's outstanding General Obligation Bonds. The rating Outlook is Stable.

KBRA releases its Business Development Company Ratings Compendium, which looks at results for the quarter and year ended December 31, 2024. This quarter, KBRA observed that business development companies (BDC) maintained a strategic focus on liability management amid a challenging market landscape marked by tighter spreads, heightened competition, and an oversupply of capital relative to deal flow. Despite modest increases in non-accruals and several restructurings and exits—notably involving Pluralsight, Khoros LLC (Lithium), and Thrasio LLC—credit performance among KBRA-rated BDCs remained broadly stable.

KBRA assigns preliminary ratings to 12 classes of Velocity Commercial Capital 2025-2 (VCC 2025-2) mortgage-backed certificates.

KBRA assigns a long-term rating of AA+ to the State of Connecticut: General Obligation Bonds (2025 Series A); General Obligation Refunding Bonds (2025 Series B); and, Taxable General Obligation Bonds (2025 Series A). KBRA additionally affirms the long-term rating of AA+ for the State's outstanding General Obligation Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-NQM6 Trust, a $553.2 million non-prime RMBS transaction. The underlying collateral, comprising 1,062 residential mortgages, is characterized by a notable concentration of alternative income documentation (82.8%) loans. Most of the loans are classified as non-qualified mortgages (Non-QM) (51.8%) or exempt (47.6%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA releases research examining how, in a climate where strategic investments and balance-sheet flexibility are paramount, many companies are opting to sell minority stakes in select assets or business units. The financing strategy is straightforward: By carving out a portion of the business into a joint venture (JV) and selling a minority interest, a company receives an immediate equity infusion—funds that can be directed toward growth initiatives, debt repayment, or other corporate priorities. This approach allows a corporate sponsor to secure fresh capital without relinquishing full control of their core operations, preserving the ability to reinvest in areas that fuel long-term competitiveness. From the perspective of creditors, however, minority-stake JVs may involve significant transfers out of the corporate group, and in some cases, the JV assets may not be available to its creditors.

Hooters of America, LLC (Hooters, or the Company), who was the manager of and operates company-owned restaurants for HOA Funding LLC Series 2021-1, a whole business securitization (WBS), filed for bankruptcy protection on March 31, 2025. The filing affects 153 company-operated stores of the system’s 313 total locations (as reported at the end of Q4 2024), the majority of which are franchised. According to the Company’s claims agent, HOA Funding, LLC is among the debtors listed in the Chapter 11 filing. The transaction documents stipulate that an Event of Default of the Series 2021-1 Notes may be caused by—among other things—a commencement of any of the securitization entities’ bankruptcies or similar proceedings, including HOA Funding, LLC, the issuing entity.

KBRA assigns a long-term rating of A+ with a Stable Outlook to the Allegheny County Airport Authority, PA (Pittsburgh International Airport) Airport Revenue Bonds, Series 2025A (AMT) and Airport Revenue Bonds, Series 2025B (Federally Taxable), and affirms the A+ rating and Stable Outlook on outstanding Airport Revenue Bonds.

KBRA assigns preliminary ratings to eight classes of Progress Residential 2025-SFR3 (Progress 2025-SFR3) single family rental (SFR) pass-through certificates.

KBRA assigns a long-term rating of AA+ to the City of Pflugerville, TX Combination Tax and Limited Revenue Certificates of Obligation, Series 2025 and Limited Tax Bonds, Series 2025. KBRA also affirms the long-term rating of AA+ for the City's outstanding Combination Tax and Limited Revenue Certificates of Obligation and Limited Tax Bonds. The rating Outlook is Stable.

KBRA is assigning a preliminary rating to the Series 2025-1 Class A-2 Notes (the Series 2025-1 Notes) from Cogent IPv4 LLC, Series 2025-1 (Cogent 2025-1), a securitization primarily collateralized by Internet Protocol version 4 (IPv4) addresses and related contracts and receivables.

KBRA, a global full-service credit rating agency, announces the retirement of Roy Chun, Senior Managing Director, who has served as a key leader at the firm for nearly a decade. Roy has overseen KBRA’s CMBS Surveillance Group and led its CMBS research initiatives, playing a pivotal role in developing a platform that has become a trusted source of insight and analysis for market participants.

KBRA releases research analyzing recent vintage loans in commercial real estate (CRE) collateralized loan obligations (CLO).

KBRA assigns preliminary ratings to 62 classes of mortgage backed notes from PMT Loan Trust 2025-INV4 (PMTLT 2025-INV4), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2025-INV4 comprises 993 fixed-rate mortgages (FRMs) with an aggregate principal balance of $355,517,432 as of the April 1, 2025 cut-off date1. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (71.9%) and second homes (28.1%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 73.6%. The weighted average original credit score is 776, which is well within the prime mortgage range.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the March 2025 servicer reporting period. The delinquency rate among KBRA-rated U.S. private label CMBS in March increased to 6.8% from 6.6% in February. The total delinquent plus current but specially serviced loan rate (collectively, the distress rate) increased 24 basis points (bps) to 9.8%. The mixed-use sector’s delinquency rate jumped 192 bps to 9.8% from 7.9%. A total of 14 mixed-use loans ($675.9 million) fell delinquent, of which three ($185.7 million) were already in special servicing. The multifamily delinquency rate (6.6%) decreased meaningfully since last month (7.9%), but the distress rate (9.8%) remains elevated above its historical level.

KBRA assigns ratings of BBB to Stone Point Credit Corporation's ("SPCC" or “the company”) $60 million, 6.03% senior unsecured notes due 2028 and its $240 million, 6.26% senior unsecured notes due 2030. The rating Outlook is Stable. The proceeds will be used for general corporate purposes and for repayment of maturing unsecured debt.

KBRA assigns ratings to seven classes of mortgage-backed notes from Santander Mortgage Asset Receivable Trust 2025-NQM1 (SAN 2025-NQM1), a $283.8 million non-prime RMBS transaction. The underlying collateral, comprised of 714 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. Approximately 59.1% 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) (7.4%), non-qualified mortgages (Non-QM) under the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule (31.7%) or categorized as QM: Rebuttable Presumption (APOR) (1.8%).

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-NQM5 Trust, a $334.9 million non-prime RMBS transaction. The underlying collateral, comprising 623 residential mortgages, is characterized by a notable concentration of alternative income documentation (88.7%) loans. Most of the loans are classified as non-qualified mortgages (Non-QM) (51.6%) or exempt (47.4%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA releases research examining improved retail sales and employment growth in February amid an increasingly uncertain outlook characterized by shifting Trump administration economic policies and declining consumer sentiment.

KBRA assigns a short-term rating of K1+ to the Triborough Bridge and Tunnel Authority (TBTA) Payroll Mobility Tax (PMT) Bond Anticipation Notes, Subseries 2025B-1 and a long-term rating of AA+ with a Stable Outlook to the TBTA PMT Bond Anticipation Notes, Subseries 2025B-2.

KBRA assigns preliminary ratings to six classes of refinancing notes issued by Hildene TruPS Securitization 4, Ltd. (HITR4), a securitization backed by a portfolio of bank and insurance TruPs CDO assets. The transaction originally closed in June 2022 and this transaction will reset the terms of the securitization including the stated maturity, conditions for Manager to sell assets, non-call and non-turbo periods, portfolio and note notional balances and note interest rates

KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of BANK5 2025-5YR14, a $884.4 million CMBS conduit transaction collateralized by 25 commercial mortgage loans secured by 74 properties.

KBRA has assigned its BBB rating to Easterly Government Properties LP’s (Easterly) recent private placement of $25 million 6.13% series A senior unsecured notes due March 20, 2030, and $100 million 6.33% series B senior unsecured notes due March 20, 2032. The Outlook is Stable. Note proceeds are expected to be used to refinance borrowings under Easterly’s $400 million revolving credit facility, as well as provide liquidity for future acquisitions and development. KBRA also maintains a BBB/Stable issuer rating for Easterly and a BBB/Stable rating for Easterly’s outstanding $900 million senior unsecured notes due 2027-2034.

KBRA assigns preliminary ratings to three classes of notes (the Series 2025-1/2 Notes) from TierPoint Issuer LLC and TierPoint Co-Issuer LLC, Series 2025-1 and Series 2025-2 (together, the Co-Issuers), a colocation data center ABS transaction. The Series 2025-1 Notes and Series 2025-2 Notes represents the third ABS issuance issued by the Co-Issuers. KBRA’s rating analysis incorporates all prior debt issuance of the Co-Issuers. KBRA anticipates affirming the ratings of the Series 2023-1 Notes, the Series 2023-2 Notes, and the Series 2024-1 Notes in conjunction with the issuance of the Series 2025-1/2 Notes (together, the Notes).

KBRA assigns preliminary ratings to ten classes of mortgage-backed notes from BRAVO Residential Funding Trust 2025-NQM3 (BRAVO 2025-NQM3). The $346.5 million RMBS transaction is collateralized by a pool of 720 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 96.7% and 3.3% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM) (38.6%) or exempt (41.2%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA is assigning preliminary ratings to the Series 2025-1 Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2025-1 Notes) from ALLO Issuer, LLC, (the Issuer), a communications infrastructure securitization.

KBRA assigns preliminary ratings to 8 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2025-NQM2 (NRMLT 2025-NQM2), a $325.7 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 (43.5%) and NewRez LLC (41.5%). In addition, all loans will be serviced by Shellpoint Mortgage Servicing, a brand of NewRez LLC.

KBRA assigns preliminary ratings to 9 classes of mortgage-backed certificates from J.P. Morgan Mortgage Trust 2025-NQM1 (JPMMT 2025-NQM1).

KBRA assigns preliminary ratings to four classes of debt issued by the reset of VCP RRL ABS II, LLC (VCP-II-R), a securitization backed by a portfolio of recurring revenue and middle market corporate loans.

KBRA assigns a long-term rating of AA+ to the County of Buncombe, NC Refunding Limited Obligation Bonds, Series 2025. KBRA additionally affirms the long-term ratings of AAA for the County's outstanding General Obligation Bonds and AA+ for the County's outstanding Limited Obligation Bonds.

KBRA assigns a long-term rating of AAA to the State of Oregon Department of Administrative Services Oregon State Lottery Revenue Bonds, 2025 Series A (Tax-Exempt Projects & Refunding) and 2025 Series B (Federally Taxable Projects). The Outlook is Stable.

KBRA assigns a preferred stock rating of BBB to BW Real Estate, Inc. (BW Real Estate), a majority-owned REIT subsidiary of Western Alliance Bank ("the bank"), the principal operating subsidiary of Western Alliance Bancorporation (NYSE: WAL; “Western Alliance” or "the company"). Beyond the assigned rating, Western Alliance's other ratings, collectively, are unaffected by this action.

KBRA has assigned a long-term rating of A+, with a Stable Outlook, to Colorado Statewide Bridge and Tunnel Enterprise Senior Infrastructure Revenue Bonds, Series 2025A.

KBRA announces the assignment of preliminary ratings to seven classes of BX 2025-SPOT, a CMBS single-borrower securitization. The collateral for the transaction is a $1.3 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 98 primarily industrial and data center assets. In total, the portfolio contains 11.7 million sf and the properties are located across 10 states, the five largest of which are Texas (27.5%), Nevada (13.7%), Colorado (13.5%), North Carolina (11.1%), and Virginia (10.1%). As of January 2025, the portfolio was 90.0% leased to over 260 unique tenants.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-HE1 Trust. OBX 2025-HE1 Trust is the first RMBS transaction issued by Onslow Bay Financial LLC (Onslow Bay) as seller/sponsor consisting of first lien (0.5%) and second lien (99.5%) home equity line of credit (HELOC) loans. The underlying pool is seasoned approximately six months and comprises 2,414 loans, with United Wholesale Mortgage, LLC (UWM; 53.6%), loanDepot.com LLC (loanDepot; 30.0%), and Mission Loans, LLC (Mission Loans; 11.5%) as the largest contributing originators. The HELOCs are interest-only (IO) adjustable-rate mortgages (ARMs), with initial draw windows of three (95.9%), five (3.1%) or ten (1.0%) years and IO terms of ten years. After the IO period, most loans feature 17-year (84.2%) or 7-year (11.7%) amortization terms. As of the March 1, 2025 cut-off date, the borrowers in the pool have drawn $216.5 million from a combined credit limit of $266.0 million for an aggregate utilization rate of 81.4%.

KBRA assigns a long-term rating of AA to the State of Louisiana General Obligation Bonds, Series 2025-B and affirms the long-term rating of AA for the State's outstanding General Obligation Bonds. The rating Outlook is Stable.