Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 32 n° 220

Posts Tagged ‘kibra’

KBRA Assigns A- Rating to Wind Energy Transmission Texas

Posted by fidest press agency su lunedì, 9 settembre 2019

Kroll Bond Rating Agency (KBRA) assigns a A- rating to the 3.67% Senior Secured Notes Due 2034 (the “Notes”) issued by Wind Energy Transmission Texas, LLC (“WETT”) for an original principal amount of $490 million.The A- rating on the Notes reflects our view of the Project’s strengths, as follows:Supportive Regulatory Environment: Transmission and distribution utilities under the jurisdiction of the PUCT in ERCOT benefit from the timely recovery of incurred investments and expenses, allowing for stable and predictable cash flows.
Barriers to Entry for Competitors: Texas is well ahead of the 2025 target installed renewable capacity of 10,000 MW; there is currently approximately 21,000 MW of wind in the system and interconnect requests are high. While this is the case, there is a lengthy and rigorous process to be approved to develop a transmission system despite a need for more installed transmission capacity.
Low Business Risk: WETT is a transmission-only utility which limits the business and operating risk of the project. WETT’s budgeted operations and maintenance expenses are similar to those of other transmission assets; there is minimal maintenance capital expenditures expected during the life of the Notes. WETT has been able to successfully operate the project without any material unplanned outages or disruptions since achieving COD.
Proven Technology: The technology used in both the transmission lines and in the substations is well-known and proven. Given the age of the assets, there is low operating risk and the maintenance expenditures in the near term are not significant.

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KBRA Releases Monthly CMBS Trend Watch

Posted by fidest press agency su domenica, 7 gennaio 2018

With this edition of Trend Watch, we’ve included a slide presentation that summarizes some of the trends in new issuance conduit credit that we’ve observed over the past year. Topics include In-Trust KLTV, Credit Barbelling, All-In KLTV, KBRA’s IO Index, and Concentration Risk. We’ve also provided a review of rating surveillance activity, as well as a high level overview of KBRA Loans of Concern (K-LOCs) that we have identified across the 2.0 conduit universe. We’re hopeful that readers find it helpful in advance of the CREFC conference.In our Spotlight section, we focus on the increased level of primary market exposure in KBRA rated conduits over the past year. In 2017, primary market exposure surpassed the 50.0% mark for the first time since we began rating conduits in 2012, and finished the year at 54.3%, which was up almost 9 points from 2016. The section looks at market tiers through a number of lenses, including in-trust and all-in leverage, property type, and interest-only exposure. It also highlights the proportion of pari passu notes among market tiers.The publication also recaps issuance and rating activity. Private label pricing volume ended the year at $88.1 billion, a 26.2% increase from full-year (FY) 2016. Driving the increased volume in 2017 was greater single borrower issuance, which saw an 88.7% year-over-year (YOY) increase to $36.5 billion. Meanwhile, conduit issuance remained relatively flat at $48.5 billion, increasing by 1.4% during the same period.We expect single borrower issuance to remain strong in 2018. At this juncture, we are aware of a dozen or more single borrower deals that may launch by early February. In addition, we expect to see as many as three CREL CLOs in that time frame, as well as a few conduits.On the ratings front, KBRA published pre-sales for six deals ($5.1 billion), including two conduits ($1.6 billion), one Freddie K-Series transaction ($1.5 billion), one CREL CLO ($1.0 billion), one single borrower ($600.0 million), and one single-family rental (SFR) ($394.2 million). December’s surveillance actions included 283 affirmations and five upgrades, which were effectuated across 25 transactions. In conjunction with the surveillance reviews, KBRA highlighted 42 K-LOCs.

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KBRA Publishes CMBS Research: “The Earthquake Insurance Divide”

Posted by fidest press agency su mercoledì, 3 gennaio 2018

londonLondon. Kroll Bond Rating Agency (KBRA) recently released a research report entitled “The Earthquake Insurance Divide.” In the aftermath of last year’s hurricane season, the topic of earthquake risk appeared to be on the minds of a number of California based CMBS investors. The concerns focused on the potential impact of a seismic event, whether large or small, on assets that may not be adequately insured, if at all.
CMBS, as well as other forms of commercial real estate (CRE) lending, typically require earthquake insurance if a property is located in seismic zone 3 or 4 and the asset’s probable maximum loss (PML) exceeds 20% of the replacement cost of the improvements. While insurance is generally required for these properties, others close to this threshold could still suffer moderate-to-significant damage in an earthquake, but fall under the insurance threshold.In our report, we identified approximately $30.6 billion (1,728 loans) of outstanding private label California conduit collateral securitized between 2010 and Year-to-Date November 2017. We then examined the PML characteristics of the population and provided various observations concerning the volume of loans that may be at higher risk of loss. In addition, we also included PML exposure maps exhibiting collateral that is below the threshold.
What we found was that the proportion of assets with PMLs that were between 18% and 20% is meaningful (10%) when viewed in the aggregate. If we were to expand the range to loans with PMLs from 15% to less than 18%, it would represent a quarter (25%) of the study population.Although the CRE finance industry has drawn a line in the sand with the greater than 20% threshold, transactions with a sizeable proportion of PMLs that are close to 20% may warrant a closer look by the marketplace, as they can pose additional risk to CMBS trusts. Uninsured assets with higher amounts of damage may be more susceptible to borrower defaults and potentially lead to transaction losses.

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KBRA Comments on ECN Capital Corporation’s Acquisition of Triad Financial Services, Inc.

Posted by fidest press agency su domenica, 29 ottobre 2017

torontoToronto (Canada) Kroll Bond Rating Agency (KBRA) most recently affirmed the BBB issuer rating with a Stable Outlook for ECN Capital Corporation (TSX: ECN), (“ECN Capital” or “the Company”), based in Toronto, Canada, on June 9, 2017. On October 25, 2017, ECN Capital announced the signing of a definitive merger agreement pursuant to which it will acquire Triad Financial Services, Inc. (Triad), an originator of prime and super-prime manufactured home loans, which are subsequently sold to financial institutions. The transaction is anticipated to close by the first quarter of 2018. ECN will pay USD100 million (CAD125 million) in cash for Triad. ECN and the senior management team of Triad have agreed to an incentive compensation plan inclusive of a set return on average equity target over the next five years. ECN will finance the transaction by redeploying capital capacity freed up from the sale of its U.S. commercial and vendor (C&V) business in February of 2017 and with the proceeds from the sale of certain rail assets in the third quarter of 2017. Similar to its previous acquisition of Service Finance Holdings, LLC, while further diversifying operations, Triad is a different business from ECN’s typical C&V targets; therefore, management continuity is key. KBRA believes the transaction will be neutral to the ratings of ECN. KBRA notes that this transcation helps to further diversify revenue and has healthy growth potential in terms of origination and revenue generation. Moreover, ECN, with CAD4.57 billion in total assets as of June 30, 2017, is an experienced acquirer with strict requirements for strategic opportunities. Additionally, the impact of the transaction on ECN’s leverage will be nominal.

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