Articles from Kroll Bond Rating Agency, LLC

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.

KBRA assigns preliminary ratings to nine classes of mortgage-backed notes from J.P. Morgan Mortgage Trust (JPMMT 2025-CES2).

KBRA assigns preliminary ratings to 8 classes of Certificates from EFMT 2025-CES2, a $290.2 million RMBS transaction, as of the cut-off date, sponsored by EFMT Sponsor LLC and consists of 3,582 newly originated closed-end second lien mortgages (CES; 100.0%). The largest originators in the underlying pool are NewRez LLC (73.8%) and loanDepot.com, LLC (12.9%). The majority of the collateral (99.6%) is characterized by fully amortizing, fixed-rate mortgages (FRMs) with predominantly 20-year (72.9%), 30-year (22.4%), 15-year (4.6%), and 10-year (0.1%) maturity terms.

KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of Benchmark 2025-V14, a $939.2 million CMBS conduit transaction collateralized by 35 commercial mortgage loans secured by 61 properties.

KBRA assigns a long-term rating of AAA with a Stable Outlook to the Dormitory Authority of the State of New York (DASNY) State Personal Income Tax Revenue Bonds (General Purpose) Series 2025A (Tax-Exempt) and State Personal Income Tax Revenue Bonds (General Purpose) Series 2025B (Federally Taxable). Concurrently, KBRA affirms the AAA rating and Stable Outlook on outstanding DASNY State Personal Income Tax Revenue Bonds (General Purpose).

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2025-CES3 (RCKT 2025-CES3).

KBRA assigns preliminary ratings to five classes of notes issued by GreenSky Home Improvement Issuer Trust 2025-1 ("GSKY 2025-1"), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements.

KBRA assigns preliminary ratings to 8 classes of mortgage-backed certificates from Morgan Stanley Residential Mortgage Loan Trust 2025-NQM2 (MSRM 2025-NQM2), a $410.0 million non-prime RMBS transaction. The underlying collateral, comprising of 1,007 residential mortgages, is characterized by a notable concentration of alternative income documentation (80.3%). The majority of the loans are either classified as non-qualified mortgages (Non-QM) (31.4%) or exempt (56.7%) 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 13 classes of BMO 2025-5C9, a $681.7 million CMBS conduit transaction collateralized by 31 commercial mortgage loans secured by 54 properties. The collateral properties are located throughout 20 MSAs, of which the three largest are New York (38.6% of pool balance), Chicago (5.6%) and Los Angeles (4.2%). The pool has exposure to most major property types, with three types representing more than 10.0% of the pool balance: retail (32.6%), hospitality (21.3%), and office (19.5%). The loans have in-trust principal balances ranging from $3.4 million to $60.0 million for the largest loan in the pool, Herald Center (8.8%), a 267,207 sf, mixed-use office/retail building located in the Midtown Manhattan of New York City. The five largest loans, which also include Pinnacle Hills Promenade (8.8%), AVAD Midland & Odessa Self Storage Portfolio (8.8%), Commando Self Storage Portfolio (8.8%) and Renaissance New York Midtown Hotel (7.3%), represent 42.5% of the initial pool balance, while the top 10 loans represent 66.3%.

KBRA assigns preliminary ratings to 62 classes of mortgage backed notes from PMT Loan Trust 2025-INV3 (PMTLT 2025-INV3), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2025-INV3 comprises 943 fixed-rate mortgages (FRMs) with an aggregate principal balance of $337,554,764 as of the March 1, 2025 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (79.7%) and second homes (20.3%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 72.5%. The weighted average original credit score is 774, which is well within the prime mortgage range.

On March 11, 2025, Bar Harbor, ME-based Bar Harbor Bankshares (NYSE American: BHB) ("Bar Harbor"), parent company of Bar Harbor Bank & Trust, and Woodsville, NH-based Guaranty Bancorp, Inc. (OTC: GUAA) ("Guaranty"), parent company of Woodsville Guaranty Savings Bank, jointly announced that they had entered into a definitive agreement pursuant to which Guaranty would merge with and into Bar Harbor Bankshares and Woodsville Guaranty Savings Bank would merge with and into Bar Harbor Bank & Trust. The transaction, valued at $41.6 million (P/TBV: 1.3x), is an all-stock deal expected to close in 2H25 pending regulatory approval. Under the agreement, James Graham, Guaranty President and CEO, would be appointed to Bar Harbor's board of directors.

KBRA assigns preliminary ratings to 3 classes of mortgage-backed notes from ACHM Trust 2025-HE1 (ACHM 2025-HE1), a $210.9 million RMBS transaction sponsored by Lendage, LLC, d/b/a Achieve Home Loans (AHL or Achieve Home Loans) and Sutton Funding LLC (retained sponsor). The transaction consists entirely of first and second lien home equity line of credit (HELOC) loans. The underlying pool is seasoned one month and comprises of 3,307 loans originated by Achieve Home Loans. The HELOC collateral consists of fixed-rate mortgages (FRMs) with 5-year initial draw windows and fully amortizing 10-year (93.2%), 15-year (1.2%) and 30-year (5.6%) terms. As of the cut-off date, the borrowers in the loan pool have an outstanding aggregate current balance of $210.9 million from the combined credit limit of $213.7 million (a 98.7% current draw percentage, also referred to as the utilization rate).

KBRA releases research on collateralized fund obligations (CFO), discussing their typical structure and common credit protections.

KBRA assigns a long-term rating of AA to the Alaska Municipal Bond Bank Authority General Obligation and Refunding Bonds 2025 Series One (Non-AMT) and 2025 Series Two (AMT). KBRA also affirms the long-term rating of AA for the Authority's outstanding General Obligation Bonds.

KBRA assigns preliminary ratings to five classes of notes that will be issued from Mission Lane Credit Card Master Trust ("MLCCMT"), Series 2025-A (“MLANE 2025-A”), a credit card ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 29.35% for the Class A notes to 3.00% for the Class E notes. Credit enhancement on the notes consists of excess spread generated by the pool of credit card receivables, overcollateralization, subordination (except for the Class E Notes), and a reserve account (if funded after closing).

KBRA assigns preliminary 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 a long-term rating of AA with a Stable Outlook to the Metropolitan Transportation Authority (MTA) Transportation Revenue Refunding Green Bonds, Series 2025A (Climate Bond Certified). Concurrently, KBRA affirms the long-term rating of AA with a Stable Outlook on the MTA's outstanding Transportation Revenue Bonds.

KBRA assigns a long-term rating of AA- to the City of Austin, TX Airport System Revenue Refunding Bonds, Series 2025 (AMT). KBRA additionally affirms the long-term rating of AA- for the City's outstanding Airport System Revenue Bonds. The rating Outlook is Stable.

KBRA is pleased to announce the assignment of preliminary ratings to 33 classes of BANK 2025-BNK49, a $929.2 million CMBS conduit transaction collateralized by 37 commercial mortgage loans secured by 65 properties.

KBRA assigns preliminary ratings to 33 classes of mortgage pass-through certificates from Morgan Stanley Residential Mortgage Loan Trust 2025-1 (MSRM 2025-1). MSRM 2025-1 is comprised of 291 residential mortgages with an aggregate principal balance of $336.9 million as of the March 1, 2025 cut-off date. The majority of the underlying collateral includes prime jumbo non-conforming loans, all of which have been designated as Qualified Mortgages (QM).

KBRA assigns a preliminary rating to one class of notes issued by FNA 8, LLC (FNA 8), a $242.7 million property tax lien ABS transaction. FNA 8 represents the Company’s sixth public tax lien ABS securitization. Proceeds from the Notes will be used to acquire a portfolio of 6,251 property tax lien assets from municipalities within 11 states, including Texas (68.4%), Illinois (9.4%), and New Jersey (7.8%), with a redemptive value of approximately $140.1 million (the Initial Tax Liens) and a weighted average original lien rate of 10.5%.

KBRA assigns preliminary ratings to notes issued by OnDeck Asset Securitization IV, LLC (“ODAS IV” or the “Issuer”). ODAS IV will issue four classes of Series 2025-1 Notes (“ODAS IV 2025-1”) totaling $261.392 million.

KBRA releases research analyzing credit union (CU) auto ABS issuance and credit performance in 2024. CUs have been active in ABS primary markets in recent years, where securitization has provided liquidity as well as the opportunity to diversify funding sources. Six CUs priced auto loan securitizations in 2024, with $2.4 billion sold. Last year’s volumes surpassed the previous record of $2 billion set in 2023 but fell short of our expectations. Increased deposit outflows and favorable funding conditions outside of the ABS market likely muted year-over-year (YoY) growth for CU-sponsored deals. We expect CUs to remain active in the ABS primary market in 2025 with further growth in auto loan ABS supply volumes, as well as some securitizations backed by other consumer receivables.

KBRA assigns a rating of BBB+ to Hercules Capital, Inc.'s (NYSE: HTGC or “the company”) $250 million 4.75% convertible unsecured notes due September 2028. The rating Outlook is Stable.

KBRA releases research examining declining January retail sales and slowing but still solid employment growth. The report evaluates these trends amid slowing wage growth, above-target inflation, and sluggish state sales tax receipts.

KBRA Credit Profile (KCP), a division of KBRA Analytics, attended the Commercial Real Estate Finance Council’s (CREFC) annual High-Yield, Distressed Assets, & Servicing Conference, held in New York City on March 4. Over 300 commercial real estate (CRE) professionals attended the event, which comprised five panels and a one-one-one discussion.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-NQM4 Trust, a $625.8 million non-prime RMBS transaction. The underlying collateral, comprising 1,112 residential mortgages, is characterized by a notable concentration of alternative income documentation (90.0%) loans. Most of the loans are classified as non-qualified mortgages (Non-QM) (47.1%) or exempt (37.5%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA assigns preliminary ratings to 8 classes of mortgage-backed notes from GS Mortgage-Backed Securities Trust 2025-CES1 (GSMBS 2025-CES1), a $310.6 million RMBS transaction sponsored by Goldman Sachs Mortgage Company, entirely of closed-end second lien mortgages (CES; 100.0%). The underlying pool is seasoned approximately 9 months and comprises 4,214 loans, with AmeriSave Mortgage Corporation (44.2%) as the largest contributing originator. The collateral is characterized mostly by fully amortizing, fixed-rate mortgages (FRMs) with 10-year (5.9%), 20-year (69.7%) and 30-year (24.5%) terms.

KBRA assigns a long-term AAA rating with a Stable Outlook to the Transportation Revenue Refunding Bonds, 2025 Series 1 to be issued by the State of Wisconsin ("the State"). Concurrently, KBRA affirms the long-term AAA rating, with a Stable Outlook on approximately $1.4 billion of outstanding Transportation Revenue Bonds (TRBs). TRBs are secured by a first lien pledge of Program Income, including vehicle Registration Fees and Other Registration-Related fees.

KBRA releases the February 2025 issue of CMBS Trend Watch.

KBRA assigns preliminary ratings to five classes of notes issued by Tricolor Auto Securitization Trust 2025-1 (“TAST 2025-1”), a subprime auto loan ABS transaction. TAST 2025-1 will issue five classes of notes totaling $328.100 million, where credit enhancement consists of overcollateralization, subordination of junior note classes (except for the Class E notes), a cash reserve account, and excess spread. The transaction has initial credit enhancement ranging from 44.50% for the Class A notes to 19.50% for the Class E notes. As of the January 31, 2025, statistical cut-off date, the notes are collateralized by a pool of fixed rate installment automobile loans with a non-zero weighted average FICO score of 614, an average principal balance of $21,381, and a weighted average APR of 16.64%.

KBRA assigns preliminary ratings to five classes of notes issued by ACHV ABS Trust 2025-1PL (“ACHV 2025-1PL”), a $193.46 million consumer loan asset-backed securities transaction. The preliminary ratings reflect initial credit enhancement levels of 71.75% for the Class A notes, 48.25% for the Class B notes, 34.00% for the Class C notes, 20.75% for the Class D notes and 10.50% for the Class E notes. Credit enhancement consists of overcollateralization, subordination (except for the Class E notes), a reserve account funded in subsequent periods after closing, and excess spread.

KBRA assigns preliminary ratings to 48 classes of mortgage-backed notes from RCKT Mortgage Trust 2025-1 (RCKT 2025-1). RCKT 2025-1 is backed by prime jumbo mortgages with an aggregate principal balance of approximately $434.3 million as of the February 1, 2025 cut-off date. The pool comprises 329 first-lien, fixed rate residential mortgage loans with both WA original LTV and WA original CLTV of 71.9%. The weighted average original credit score is 772, which is within the prime mortgage credit score range. The underlying collateral consists entirely of 30-year fixed-rate mortgages (FRMs), all of which are non-agency loans.

KBRA assigns a short-term rating of K1+ to the Triborough Bridge and Tunnel Authority (TBTA) Payroll Mobility Tax (PMT) Bond Anticipation Notes, Series 2025A. Concurrently, KBRA affirms the K1+ short-term rating on the outstanding TBTA PMT Bond Anticipation Notes, Series 2024B, and affirms the long-term rating of AA+ with a Stable Outlook for outstanding TBTA PMT Senior Lien Bonds.

On March 3, 2025, Sunnova Energy Corporation (Sunnova) stated in its fourth quarter and full-year 2024 financial results that there is substantial doubt about its ability to continue as a going concern for at least one year without implementing additional capital management measures. To address this, Sunnova is looking to take a number of steps to increase the amount of available cash and reduce expenses. It has also hired a financial advisor to manage certain aspects of their debt management and refinancing efforts.

KBRA releases an updated report tracking key metrics within recurring revenue loan (RRL) securitizations.

KBRA assigns preliminary ratings to 11 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-2 and Pagaya AI Debt Trust 2025-2 (collectively “PAID 2025-2”), an unsecured consumer loan ABS transaction. PAID 2025-2 has initial hard credit enhancement levels of 84.75% for the Class A-1 Notes to 3.36% 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 six classes of mortgage pass-through notes from Verus Securitization Trust 2025-2 (VERUS 2025-2), a $638.4 million non-prime RMBS transaction. The underlying collateral, comprised of 1,280 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 741 and exhibit moderate equity in each mortgaged property, with an original combined LTV (CLTV) ratio of 69.2%. Most of the loans are classified as exempt (40.1%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. The remaining loans are classified as Non-QM (28.5%), QM: Safe Harbor (APOR) (27.1%), or QM: Rebuttable Presumption (APOR) (4.2%).

KBRA is pleased to announce the assignment of preliminary ratings to 34 classes of MSBAM 2025-5C1, a $934.6 million CMBS conduit transaction collateralized by 40 commercial mortgage loans secured by 67 properties.

KBRA announces the assignment of preliminary ratings to five classes of INTOWN 2025-STAY, a CMBS single-borrower securitization.

KBRA assigns preliminary ratings to 60 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2025-3 (SEMT 2025-3), a $521.8 million prime RMBS transaction. The pool is comprised of 440 first-lien, fully amortizing fixed rate mortgages with 15-years or 30-years maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 777 and moderate borrower equity, with a WA original LTV of 72.0% and WA original CLTV of 72.1%.

KBRA assigns preliminary ratings to three classes of notes issued by FHF Issuer Trust 2025-1 (“FHF 2025-1”), a subprime auto loan asset-backed securities transaction.

KBRA assigns a preliminary rating to one class of notes issued by BHG Securitization Trust 2025-1CON (“BHG 2025-1”), an asset-backed securitization collateralized by a pool of unsecured consumer loans (“Consumer Loans”).

KBRA assigns preliminary ratings to five classes of notes issued by Foundation Finance Trust 2025-1 (“FFIN 2025-1”), an asset-backed securitization collateralized by unsecured consumer loans primarily used for home improvements.

KBRA is pleased to announce the assignment of preliminary ratings to four classes of FREMF Series 2025-K760 mortgage pass-through certificates and three classes of Freddie-Mac structured pass-through certificates (SPCs), Series K-760. FREMF 2025-K760 is an $887.9 million CMBS multi-borrower transaction. Freddie Mac will guarantee six classes of certificates issued in the underlying Series 2025-K760 securitization and will deposit the guaranteed underlying certificates into a separate trust that will issue the SPCs.

KBRA assigns preliminary ratings to 63 classes from Connecticut Avenue Securities Trust 2025-R02 (CAS 2025-R02), a credit risk sharing transaction with a total note offering of $710,598,000. The pool is characterized by loans with original loan-to-value (LTV) ratios that are greater than 60% and less than or equal to 80%.

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

KBRA assigns preliminary ratings to five classes of notes issued by NMEF Funding 2025-A, LLC (NMEF 2025-A), an equipment ABS.

KBRA assigns preliminary ratings to seven classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2025-3 (AOMT 2025-3), a $333.3 million non-prime RMBS transaction. The underlying collateral, comprised of 645 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 (57.7%) or exempt (42.3%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Angel Oak Mortgage Solutions originated 43.9% of the pool, with no other originator comprised over 10% of the collateral.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the February 2025 servicer reporting period. The delinquency rate among KBRA-rated U.S. private label CMBS in February decreased 16 basis points (bps) to 6.61% from 6.77% in January. The total delinquent plus current but specially serviced loan rate (collectively, the distress rate) decreased 14 bps to 9.53%. However, the multifamily delinquency rate jumped 118 bps, mainly due to two loans, 180 Water ($265 million in three conduits) and Park West Village ($254 million in six conduits). Additionally, seven other multifamily loans totaling $89.1 million also became delinquent.

KBRA assigns a AAA rating, with a Stable Outlook to the State of Wisconsin's (the State's) General Obligation (G.O.) Bonds of 2025, Series A. Proceeds will be used by the State for various governmental purposes for which public debt may be issued.