Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 33 n° 335

Posts Tagged ‘kbra’

KBRA Releases The Bank Treasury Newsletter

Posted by fidest press agency su sabato, 28 dicembre 2019

Kroll Bond Rating Agency (KBRA) releases this month’s edition of the newsletter, Bank Treasurers, CECL, and the Texas Ratio, which reviews many of the underappreciated aspects of the new accounting rule that will upend the traditional incurred loss model and throw open to question some of the strategic approaches by banks in lending segments that are structurally not CECL-friendly. CECL is assumption and model-intensive, and as the newsletter argues, adds more complexity for both preparers and users of financial statements to gather and interpret information about asset quality. The LIBOR-SOFR transition, scheduled for January 1, 2022, is another topic this month. Bank treasurers without a lot of exposure to LIBOR-SOFR in their loan books, may want to review their floating rate investment securities portfolio that could be tied to LIBOR. Finally, the newsletter reviews proposals by the FDIC to reduce the complexity of rules governing the national rate cap and brokered deposits, to modernize regulations that have not been amended since 1991.

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KBRA Releases the Bank Treasury Newsletter Chart Deck

Posted by fidest press agency su venerdì, 20 dicembre 2019

Kroll Bond Rating Agency (KBRA) releases this month’s edition of the Bank Treasury Newsletter Chart Deck, which focuses on the new accounting rule, Current Expected Credit Losses (CECL), scheduled to come into effect at the start of the new year. Further, the chart deck discusses how CECL could have hypothetically impacted bank balance sheets had it been in effect before the last financial crisis.
The main takeaway is that the banking industry over-reserved for credit losses under existing generally accepted accounting principles (GAAP), and that switching to CECL will lead to the sector holding higher reserves compared to existing levels—which seems like overkill. FDIC data suggests that community banks began to build up reserves in anticipation of a downtown as early as 2005, and that over 35 years, the banking industry’s net charge-off rate averaged 0.8%, compared to an average nonperforming loan rate of 2.2%.

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KBRA Releases Research: Project Finance and Infrastructure 2020

Posted by fidest press agency su venerdì, 20 dicembre 2019

The global project finance and infrastructure (PFI) market is expected to expand in 2020 as many countries must replace aging infrastructure, adapt to new technologies, and develop new means of energy production. These major initiatives will likely come about through the development of renewable energy assets to meet clean energy targets, improvements in telecommunications systems to account for increased internet demand, and new infrastructure investments (rail, parking, ports, etc.) to accommodate a growing population.However, the question of what comes next in the PFI sector seemed to have taken on greater importance in 2019 as the market adapted to changes in tax incentives, regulatory requirements, and the emergence of new technologies. This 2020 sector outlook discusses recent market trends, credit performance of certain PFI subsectors, and provides the Project Finance and Infrastructure Group’s forward-looking views for the year ahead.

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KBRA Assigns Ratings to Reliant Bancorp, Inc.

Posted by fidest press agency su sabato, 23 novembre 2019

Kroll Bond Rating Agency (KBRA) assigns a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 for Brentwood, Tennessee-based Reliant Bancorp, Inc. (NASDAQ: RBNC) (“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 for the subsidiary bank, Reliant Bank (“the bank”). The Outlook for all long-term ratings is Stable.The ratings are supported by the company’s low credit loss history which has permitted relatively stable earnings, reporting core ROA generally near 1% (core ROA of 0.95% for 3Q19) since 2014. Historically, RBNC has maintained a sound capital profile including TCE and leverage ratios ranging from 9-10%. However, the pending acquisitions of Tennessee Community Bank Holdings, Inc. and First Advantage Bancorp, Inc. (OTC: FABK) are expected to markedly decrease capital ratios, with the TCE ratio dropping to roughly 8.0% on a proforma basis. Nevertheless, management intends to rebuild capital over time, managing towards pre-acquisition levels. Somewhat counterbalancing RBNC’s ratings strengths, which incorporate our favorable impressions of the company’s senior management team, is a funding profile that is relatively higher cost, with a heavier component of CDs. Additionally, RBNC has a comparatively high concentration in riskier C&D lending, though the bank has managed the portfolio well over time, minimizing credit losses with proven credit controls. Moreover, in addition to the inherent risks associated with integrating multiple acquired institutions in a calendar year, RBNC’s pending acquisition of First Advantage Bancorp, Inc. includes the high-risk, high-yield manufactured home loan portfolio, though partly mitigated by RBNC’s retention of key members of FABK who have a successful track record with manufactured home lending.

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KBRA Assigns Preliminary Ratings to Raptor Aircraft Finance I Limited

Posted by fidest press agency su lunedì, 14 ottobre 2019

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three series of notes (the “Notes”) issued by Raptor Aircraft Finance I Limited (the “Cayman Issuer”) and Raptor Aircraft Finance I LLC (the “US Issuer”, and, together with the Cayman Issuer, “Raptor 2019-1”, or the “Issuers”).This transaction represents the inaugural securitization for Seraph Aviation Management Limited (“Seraph” or the “Servicer”). Seraph is an indirect wholly owned subsidiary of Stellwagen Group Limited (“Stellwagen”), which has its registered office in Malta and has offices in Dublin, Stamford, CT, London and Seoul.Proceeds from the sale of the Notes will be used to acquire 19 aircraft (the “Portfolio”) on lease to 14 lessees located in 12 jurisdictions. As of June 30, 2019, the initial weighted average aircraft age of the Portfolio is approximately 3.7 years with a weighted average remaining lease term of approximately 7.0 years.
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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KBRA Assigns A- Rating to Air Lease Medium-Term Notes

Posted by fidest press agency su venerdì, 13 settembre 2019

Kroll Bond Rating Agency (KBRA) assigns a senior unsecured rating of A- with a Stable Outlook to the 2-part Medium-Term Notes, Series A, due 2023 and due 2029, to be issued by Air Lease Corporation (NYSE: AL, “Air Lease” or “the Company”), an aircraft leasing company headquartered in Los Angeles, California. The company intends to use the proceeds for general corporate purposes, which may include the purchase of aircraft and the repayment of existing indebtedness. KBRA most recently affirmed the Company’s issuer and senior unsecured debt ratings of A- on December 14, 2018. The Notes will be Air Lease’s senior unsecured obligations and will rank equally in right of payment among themselves and with its existing and future senior indebtedness. The Notes will rank senior in right of payment to any future subordinated unsecured indebtedness and will be effectively subordinated to its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. The Notes will be structurally subordinated to all existing and future indebtedness and other liabilities of our subsidiaries.
The ratings of Air Lease are supported by strong financial fundamentals, as reflected by a low leverage strategy, strong profitability, liquidity and cash-flow metrics, and largely unencumbered asset base. The rating also takes into account Air Lease’s strong management profile and the growing strength of its global franchise, which is backed by a young and in-demand fleet, a diverse customer base, substantial forward lease placement of orders, and a strong order book. The ratings are further supported by the stable outlook of the global aircraft leasing industry. These strengths are balanced by the disciplined funding and placement planning required to manage the significant order book, an element of key-man risk despite good succession planning, the cyclical nature of the industry, potential credit quality issues in the airline industry as a whole, and event risks related to air travel in general.

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KBRA Assigns Preliminary Ratings to BANK 2019-BNK19

Posted by fidest press agency su venerdì, 19 luglio 2019

Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 17 classes of BANK 2019-BNK19 (see ratings list below), a $1.3 billion CMBS conduit transaction collateralized by 73 commercial mortgage loans secured by 76 properties.The collateral properties are located in 24 states, with three states, California (25.2%), New York (21.2%), and Florida (10.7%), representing more than 10% of the pool balance. The pool has exposure to most of the major property types, with three each representing 10% or more of the pool balance: office (51.2%), retail (23.6%), and lodging (10.8%). The loans have principal balances ranging from $1.3 million to $100 million for the largest loan in the pool, Grand Canal Shoppes (7.7%), which is secured by a 759,891-sf specialty retail, entertainment, and dining complex located on the Strip in Las Vegas, Nevada. The five largest loans, which also include Waterford Lakes Town Center (6.9%), 350 Bush Street (6.5%), 30 Hudson Yards (6.5%), and University Square (5.5%), represent 33.1% of the initial pool balance, while the top 10 loans represent 54.2%.KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts’ evaluation of the underlying collateral properties’ financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our U.S. CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 7.8% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 36.3% less than third party appraisal values. The pool has an in-trust KLTV of 88.4% and an all-in KLTV of 96.4%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings.For complete details on the analysis, please see our pre-sale report published at http://www.kbra.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of ratings that differ from the preliminary ratings.

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KBRA Releases Research – KBRA Zooms in on Canadian Energy

Posted by fidest press agency su venerdì, 24 Maggio 2019

Kroll Bond Rating Agency (KBRA) releases a new report focusing on Canadian Energy. As KBRA expands our energy sector coverage, we would be remiss if we overlooked what is taking place in Canada. In the KBRA Zooms in on Canadian Energy report, we highlight our credit views on a sample portfolio of 60 Canadian energy producers and discusses policy decisions by the sovereign and sub-sovereign governments that have an impact on the sector. The report also provides an overview of the dynamics underway in Canada’s oil sector in regard to pricing, supply, and exports. On balance, KBRA leans toward being constructive on the sector over the long term as infrastructure shortfalls are more likely to be addressed. Our view on the sector considers the improving performance of the model portfolio of Canadian energy corporates over the last two years as well as the policy environment, which may turn out to be the fulcrum that rebalances Canada’s energy story toward a more positive direction. This commentary builds on KBRA’s emphasis on bringing together viewpoints and expertise from across the company, in this case Sovereigns and Corporates, in order to maximize analytical depth.
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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KBRA Releases Research Report: The Case for Canadian Banks

Posted by fidest press agency su giovedì, 18 aprile 2019

Kroll Bond Rating Agency (KBRA) releases The Case for Canadian Banks research report, which makes the following key points:In KBRA’s opinion, the structure of Canada’s mortgage market substantially reduces banking system risk.Canadian banks, which generally are prudent mortgage underwriters, dominate the mortgage market. In addition, a large portion of mortgages effectively carry a government guaranty.
KBRA rates Canada AAA, implying de minimus risk that the sovereign would not honor its guaranty.KBRA views the Canadian banking system as having very solid financial strength owing to conservative policies, high-quality supervision, and the generally strong and stable macro profile of the Canadian economy.KBRA notes that Canada is undergoing a slowdown, which could lead to an uptick in unemployment and further fall in housing prices—factors that do pose risks, especially in the context of high household debt and debt service levels.A continued economic slowdown combined with housing price pressure may cause impaired loans and provisions for credit losses to gradually normalize from extremely low levels. However, KBRA believes these risks are quite manageable in terms of the banking system and the sovereign debt profiles.

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KBRA Comments on the Worldwide Grounding of the Boeing 737

Posted by fidest press agency su martedì, 19 marzo 2019

With our deepest regrets following the second crash of a 737 Max jet, which resulted in the tragic loss of 157 lives onboard Ethiopian Airlines Flight 302 to Kenya on March 12, KBRA details our view on the potential credit impact for both airlines and aircraft lessors, as well as our rated aviation transactions. As of March 13, all 737 Max variants are grounded by the relevant aviation regulatory bodies due to safety concerns. On December 3, 2018, following the crash of the 737 Max 8 jetliner Lion Air Flight 610, KBRA released a report noting our approach for liquidity stresses for aircraft, should there be long-term implications for the value of the 737 Max aircraft series.In this comment, we discuss the financial impact for aircraft lessors and airlines in the event of a prolonged grounding of the 737 Max, as well as the potential stress it could cause for manufacturer Boeing. There continues to be no 737 Max aircraft in any of the Aviation ABS transactions rated by KBRA.

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KBRA Releases Research on Auto Loan Extensions

Posted by fidest press agency su mercoledì, 27 febbraio 2019

Kroll Bond Rating Agency (KBRA) releases a research report examining the use of subprime auto loan extensions as a loss mitigation tool for ABS servicers. In general, KBRA believes the use of extensions ultimately benefits ABS investors by reducing delinquency and default rates. However, a high rate of extensions within a securitized collateral pool can meaningfully increase bond duration and expose ABS investors—particularly owners of deeply subordinated tranches—to tail risks. As such, it is important for investors to understand each servicer’s policy regarding extensions, as well as how extensions are handled within ABS deal structures.
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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KBRA Releases European RMBS Rating Methodology Country Addendum: Republic of Ireland

Posted by fidest press agency su lunedì, 21 gennaio 2019

Kroll Bond Rating Agency (KBRA) releases its European RMBS Rating Methodology Country Addendum for rating securities backed by residential mortgage loans in the Republic of Ireland (Ireland). The addendum addresses analytical considerations specific to prime, buy-to-let, and non-conforming mortgages in Ireland. This addendum addresses country-specific assumptions regarding the loans’ KBRA Probability of Default (KPD), including (i) base PD, (ii) a description of a benchmark loan, (iii) loan-level attributes (LLA) that impact the KPD, and (iv) rating multipliers. It also addresses country-specific assumptions regarding the loans’ KBRA Loss Severity, including (i) house price decline assumptions, (ii) fire sale discount assumptions, (iii) atypical property haircuts, (iv) liquidation value discounts, and (v) liquidation costs and timelines. Cashflow modelling assumptions specifically relevant to Ireland are also disclosed in the addendum.The publication of this addendum follows KBRA’s release of its European RMBS Rating Methodology and associated UK addendum in May 2018.

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KBRA Assigns Preliminary Ratings to Progress Residential 2018-SFR3

Posted by fidest press agency su mercoledì, 19 settembre 2018

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six classes of Progress Residential 2018-SFR3 (Progress 2018-SFR3) single-family rental pass-through certificates. Progress 2018-SFR3 is a single-borrower, single-family rental (SFR) securitization that will be collateralized by a $662.4 million loan secured by first priority mortgages on 3,459 income-producing single-family homes, of which 3,418 properties (98.9%) were sourced from Progress 2016-SFR1. In conjunction with the subject transaction, Progress 2016-SFR1 was fully repaid on September 7, 2018, which is expected to be reflected in the September 2018 remittance report. The fixed-rate loan will require interest-only payments and have a five-year term. Progress 2018-SFR3 will be the ninth KBRA-rated SFR securitization issued by Progress.The subject transaction will be Progress’ first securitization to include a voluntary substitution feature that permits the issuer to replace any property or sub-portfolio of properties with a substitute property or portfolio of properties up to a maximum of 5.0% of the homes in the underlying portfolio, by count, as of the closing date. Progress is allowed to replace up to 172 properties over the remaining duration of the deal with occupied detached single-family homes. As the substitution threshold is by count, it is conceivable that up to 8.5% of the pool, by BPO value, could be substituted if the assets that were removed from the pool were comprised of those with the highest BPO values.If a Low DSC period has occurred with respect to loan component E, F or G and there are insufficient available amounts to pay full or partial interest on Loan Component F and/or loan component G then the due interest on these components will be deferred and added to the respective principal balance. While such deferrals are occurring, any excess cash flow will be held in a reserve account until the cash flows improve and the DSC threshold is met for two consecutive quarters.The underlying single-family rental properties are located in or near 20 Core Based Statistical Areas (CBSAs) across nine states. The top-three CBSAs represent 39.1% of the portfolio and include Tampa (16.2%), Atlanta (11.7%), and Phoenix (11.3%). The aggregate BPO value of the underlying homes was $794.7 million, yielding an LTV of 83.4%. KBRA adjusted the BPOs, which yielded an aggregate value of $726.1 million. This represents an 8.6% haircut to the nominal BPO value. The resulting LTV based on KBRA’s adjusted BPO value was 91.2%.

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