Articles from Kroll Bond Rating Agency, LLC

KBRA assigns its BBB+ preliminary rating to the Public Finance Authority's $3.6 billion senior lien toll revenue bonds, series 2025 (Georgia SR 400 Express Lanes Project) (the private activity bonds (PAB)), which support the Georgia SR 400 Express Lanes Project. KBRA also assigns its BBB preliminary rating to SR 400 Peach Partners, LLC’s $4 billion TIFIA loan. The Outlook is Stable.

KBRA assigns preliminary ratings to 8 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2025-NQM4 (NRMLT 2025-NQM4), a $488.4 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 NewRez LLC (35.8%) and Champions Funding, LLC (25.7%). In addition, all loans will be serviced by Shellpoint Mortgage Servicing, a brand of NewRez LLC.

KBRA assigns preliminary ratings to 42 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2025-6 (JPMMT 2025-6). The pool comprises 275 first-lien, fixed rate residential mortgage loans with an aggregate principal balance of $346.4 million as of the July 1, 2025 cut-off date. The pool includes both non-agency (90.7%) and agency-eligible (9.3%) loans. The weighted average original credit score is 771, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to 30 classes of mortgage pass-through certificates from Provident Funding Mortgage Trust 2025-3 (PFMT 2025-3).

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2025-CES7 (RCKT 2025-CES7).

KBRA assigns preliminary ratings to five classes of notes issued by American Credit Acceptance Receivables Trust 2025-3 (“ACAR 2025-3”), an ABS collateralized by a pool of auto loans.

KBRA is pleased to announce the assignment of preliminary ratings to 22 classes of BBCMS 2025-5C36, a $613.5 million CMBS conduit transaction collateralized by 31 commercial mortgage loans secured by 165 properties. The collateral properties are located throughout 40 MSAs, of which the three largest are New York (20.5% of pool balance), Los Angeles (11.9%) and Atlanta (10.3%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: multifamily (45.0%), industrial (10.8%), mixed use (10.2%), and lodging (10.1%). The loans have in-trust principal balances ranging from $3.3 million to $61.0 million for the largest loan in the pool, ILPT 2025 Portfolio (9.9%), a portfolio of 102 primarily industrial properties located in 30 states that together comprise 18.3 million sf which is currently 82.9% leased to over 120 tenants. The five largest loans, which also include Equinox Sports Club LA (9.8%), 71 Spring Street (9.1%), Arrowhead Townhomes (7.3%), and The Roosevelt New Orleans (6.5%), represent 42.7% of the initial pool balance, while the top 10 loans represent 67.5%.

KBRA assigns preliminary ratings to 65 classes of mortgage pass-through certificates from Radian Mortgage Capital Trust 2025-J3 (RMCT 2025-J3), which is backed by prime mortgages with an aggregate principal balance of approximately $374.0 million as of the July 1, 2025 cut-off date. The pool comprises 398 first-lien, fixed rate residential mortgage loans. The weighted average original credit score is 774, which is in line with the prime mortgage credit score range. The underlying collateral consists of both prime jumbo (76.4%) and agency-eligible (23.6%) loans.

KBRA assigns a long-term rating of AAA with a Stable Outlook to the New York State Thruway Authority State Personal Income Tax Revenue Bonds Series 2025A (Tax-Exempt) and State Personal Income Tax Revenue Green Bonds Series 2025B (Climate Bond Certified) (Tax-Exempt). Concurrently, KBRA affirms the AAA rating and Stable Outlook on outstanding New York State Personal Income Tax Revenue Bonds issued by the Dormitory Authority of the State of New York.

KBRA assigns preliminary ratings to four classes of notes issued by Reach ABS Trust 2025-2 (“Reach 2025-2”), an unsecured consumer loan ABS transaction. Credit enhancement consists of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account funded at closing, and excess spread.

KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of MSBAM 2025-C35, a $597.8 million CMBS conduit transaction collateralized by 40 commercial mortgage loans secured by 65 properties. The collateral properties are located throughout 29 MSAs, of which the three largest are New York (11.6% of pool balance), Boston (11.4%), and Washington - NoVA - MD (8.8%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: office (22.3%), retail (19.4%), mixed-use (18.5%), and lodging (15.3%). The loans have in-trust principal balances ranging from $1.7 million to $59.5 million for the largest loan in the pool, BioMed MIT Portfolio (10.0%), which is comprised of eight life science lab/office properties located in Cambridge, Massachusetts, directly adjacent to the Massachusetts Institute of Technology (MIT) campus. The five largest loans, which also include Marriott World Headquarters (8.8%), Extended Stay Portfolio (7.5%), Crossroads Office Park (7.1%), and 32 Old Slip - Leased Fee (6.0%), represent 39.4% of the initial pool balance, while the top 10 loans represent 61.1%.

KBRA assigns preliminary ratings to Jersey Mike's Funding, LLC, Series 2025-1 Class A-2 Notes, a whole business securitization (WBS). Jersey Mike's 2025-1 represents Jersey Mike’s Franchise Systems, LLC’s (Jersey Mike’s or the Company’s) fourth securitization following the establishment of the master trust in December 2019. In conjunction with the issuance of the Series 2025-1 Notes, KBRA anticipates affirming the ratings on the Issuer’s outstanding notes (the Existing Notes and, together with the Series 2025-1 Notes, the Notes). The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2025-1 Notes.

KBRA has upgraded its issuer and senior unsecured note ratings for SmartStop OP, L.P. to BBB with a Stable Outlook from BBB- Watch Upgrade. The rating action follows parent company SmartStop Self Storage REIT, Inc.'s (NYSE: SMA) completion in April of an initial public offering (IPO), which raised approximately $874 million of net equity. KBRA has also assigned a BBB/Stable rating to SmartStop OP's recent issuance of CAD$500 million senior unsecured notes due 2028.

KBRA releases its quarterly report highlighting our Chief Strategist Van Hesser’s view on key economic indicators, as well as what he identifies as the most influential factors driving credit markets in the upcoming quarter. The report also examines credit market valuations in the context of current and future market conditions.

KBRA assigns preliminary ratings to three classes of notes issued by Sunrun Pangea Issuer 2025-2, LLC. The transaction is collateralized by a diversified pool of 63,318 leases and power purchase agreements (PPAs) associated with residential solar photovoltaic installations (PV Systems). The total Aggregate Discounted Solar Asset Balance (ADSAB) based on a discount rate of 7.3%, consisting of the discounted payments of the leases and PPAs is approximately $597.1 million.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-NQM13 Trust, a $662.7 million non-prime RMBS transaction. The underlying collateral, comprising 1,208 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 92.8% and 7.2% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 47.2%) or exempt (42.9%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. There were no originators comprising over 10% of the pool.

KBRA assigns a long-term rating of AAA to the City of Dublin, OH (the "City") General Obligation (Limited Tax) Various Purpose Improvement and Refunding Bonds, Series 2025. Concurrently, KBRA affirms the long-term rating of AAA for the City's outstanding parity General Obligation (Limited Tax) Various Purpose Improvement and Refunding Bonds. The Outlook is Stable.

KBRA assigns preliminary ratings to 60 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2025-7 (SEMT 2025-7), a $398.6 million prime RMBS transaction. The pool is comprised of 326 first-lien, fully amortizing fixed rate mortgages with 20-year and 30-year maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 779 and moderate borrower equity, with a WA original LTV of 71.9% and WA original CLTV of 71.9%.

KBRA assigns preliminary ratings to six classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2025-8 (AOMT 2025-8), a $271.3 million non-prime RMBS transaction. The underlying collateral, comprised of 550 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 (46.3%) or exempt (53.7%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Emporium TPO originated 24.8% and Angel Oak Mortgage Solutions originated 18.4% of the pool, with no other originator comprising over 10% of the collateral.

KBRA assigns preliminary ratings to six classes of notes issued by Research-Driven Pagaya Motor Asset Trust 2025-4 and Research-Driven Pagaya Motor Trust 2025-4 (collectively “RPM 2025-4”), an auto loan ABS transaction. RPM 2025-4 has initial credit enhancement levels of 51.86% for the Class A notes to 4.12 % for the Class E notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class E notes), a cash reserve account funded at closing, and excess spread.

KBRA releases research examining private credit's role as a source of systemic strength, tracing its history, function, and evolving contours of risk.

KBRA releases research commenting on the Federal Housing Finance Agency's (FHFA) July 8 announcement that lenders may now use VantageScore 4.0 (VS4) for mortgages sold to government-sponsored entities (GSE) Fannie Mae and Freddie Mac.

KBRA releases the June 2025 issue of the KBRA CMBS Loss Compendium, providing updated loss estimates for all 375 KBRA-rated outstanding conduit transactions. The report, together with the accompanying spreadsheet, also includes data on lifetime realized losses for 13 conduits whose ratings have been withdrawn following payoffs.

KBRA assigns preliminary ratings to five classes of notes issued by GreenSky Home Improvement Issuer Trust 2025-2 ("GSKY 2025-2"), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements.

KBRA assigns a long-term rating of AAA for the Harris County Flood Control District, TX Improvement Bonds Refunding Bonds Series 2025, Contract Tax Refunding Bonds Series 2025A, and outstanding Contract Tax Obligations. Additionally, KBRA affirms the long-term rating of AAA for the District's Limited Tax Obligations. The rating Outlook is Stable.

KBRA assigns a long-term rating of AA with a Stable Outlook to the Salt Lake City, Utah Airport Revenue Bonds, Series 2025A (AMT) and Airport Revenue Bonds, Series 2025B (Non-AMT). KBRA additionally affirms the long-term rating of AA for the City's outstanding Airport Revenue Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to 62 classes of mortgage-backed notes from PMT Loan Trust 2025-INV7 (PMTLT 2025-INV7), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2025-INV7 comprises 1,036 fixed-rate mortgages (FRMs) with an aggregate principal balance of $386.3 million as of the July 1, 2025 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (80.3%) and second homes (19.7%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 73.9%. The weighted average original credit score is 776, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to eight classes of mortgage-backed certificates from Morgan Stanley Residential Mortgage Loan Trust 2025-DSC2 (MSRM 2025-DSC2). MSRM 2025-DSC2 is the second RMBS transaction sponsored by Morgan Stanley Mortgage Capital Holdings LLC that is solely backed by collateral underwritten to debt-service coverage ratio (DSCR) guidelines. The underlying $399.3 million pool, consisting of 1,280 rental-property mortgages, is characterized by a moderate original combined loan-to-value (CLTV) ratio of 68.8%. All of the loans in the pool are exempt from the ATR/QM rule due to being originated for business purposes.

KBRA assigns a long-term rating of AAA to the Harris County, TX Permanent Improvement Refunding Bonds, Series 2025A and Unlimited Tax Road Refunding Bonds, Series 2025A. KBRA additionally affirms the long-term rating of AAA for the County's outstanding Limited Tax Obligations and Unlimited Tax Obligations. The rating Outlook is Stable.

KBRA assigns its BBB- preliminary rating to JFK NTO LLC’s proposed $1.367 billion special facilities revenue bonds (series 2025 bonds) for Phase A of the Terminal One redevelopment project, also called New Terminal One (NTO), at New York’s John F. Kennedy International Airport (JFK). The Outlook is Stable. The financing plan originally consisted of a single five-year term loan with two tranches totaling $6.33 billion, along with a $200 million liquidity facility, a $50 million working capital facility, and a $50 million security deposit facility to be borrowed by the New York Transportation Development Corporation, a local development corporation, as conduit issuer, and subsequently on-lent to JFK NTO LLC (the borrower). Funding also includes $2.33 billion of sponsor equity (backed by letters of credit). The series 2025 bonds will be used to refinance a portion of the outstanding term loan, which was issued in 2022.

KBRA assigns ratings of BBB- to Monroe Capital Income Plus Corporation's ("MCIP" or "the company") $42 million, 6.20% senior unsecured notes due July 10, 2028, and its $161 million, 6.57% senior unsecured notes due July 10, 2030. The rating Outlook is Stable. Proceeds will be used to repay secured debt.

KBRA releases research examining the potential impact of the recently passed One Big Beautiful Bill Act (OBBBA) on the solar asset-backed securities (ABS) market.

KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of BBCMS 2025-C35, a $795.3 million CMBS conduit transaction collateralized by 33 commercial mortgage loans secured by 101 properties. The collateral properties are located throughout 35 MSAs, of which the three largest are New York (26.9% of pool balance), Washington - NoVA - MD (13.6%), and Boston (9.4%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: mixed-use (31.1%), retail (28.6%), office (13.2%), and multifamily (12.0%). The loans have in-trust principal balances ranging from $996,975 to $79.0 million for the largest loan in the pool, Rentar Plaza (9.9%), a 1.5 million sf, Class-B, mixed-use industrial and retail building located in the Middle Village neighborhood of New York City’s borough of Queens. The five largest loans, which also include BioMed MIT Portfolio (9.4%), 29-33 Ninth Avenue (9.4%), Marriott World Headquarters (9.4%) and Washington Square (8.8%), represent 47.0% of the initial pool balance, while the top 10 loans represent 68.2%.

KBRA assigns preliminary ratings to NBC Funding LLC (NBC 2025-1), Series 2025-1 Class A-1 Notes and Class A-2 Notes, a whole business securitization (WBS). NBC 2025-1 represents the Issuer’s fourth issuance out of the existing master trust. In conjunction with the issuance of NBC 2025-1, the Series 2021-1 A-2 Notes and Series 2021-1 Class B Notes are expected to be refinanced at which time KBRA will withdraw the ratings. At that time KBRA also anticipates affirming the ratings on the Issuer’s outstanding Series 2021-1 A-1-VFN Notes, Series 2021-1 A-1-LR Notes, and the Series 2024-1 A-2 Notes (the Existing Notes and, together with the Series 2025-1 Notes, the Notes). The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2025-1 Notes.

KBRA assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to USCB Financial Holdings, Inc. (NASDAQ: USCB)(“the company”). Additionally, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 to its subsidiary, U.S. Century Bank ("the bank"). The Outlook for all long-term ratings is Stable.

KBRA assigns preliminary ratings to eight classes of notes issued by Westlake Automobile Receivables Trust 2025-2 (“WLAKE 2025-2”), an asset-backed securitization collateralized by a pool of auto loans.

KBRA releases the June 2025 issue of CMBS Trend Watch.

The version of the One Big Beautiful Bill Act (OBBBA) that was passed by the U.S. Senate on July 1 did not include the taxation provisions on litigation finance originating from the Tackling Predatory Litigation Funding Act (TPLFA). As we indicated in our June 27 report, Potential OBBBA Implications for Litigation Finance ABS, if the TPLFA provisions had been passed in their proposed form, this could have had notable implications for litigation finance asset-backed securities (ABS).

KBRA announces the assignment of preliminary ratings to three classes of CENT 2025-CITY, a CMBS single-borrower securitization.

KBRA releases research examining the implications of the 2025 Atlantic hurricane season and the evolving reinsurance market for the U.S. property and casualty (P&C) insurance sector. The 2025 hurricane season is forecast to exceed normal activity levels, with the National Oceanic and Atmospheric Administration (NOAA) predicting approximately 16 named storms, eight hurricanes, and four major hurricanes. This outlook, driven by exceptionally warm Atlantic waters and conducive atmospheric conditions, raises the probability of significant insured losses, especially if storms make landfall in densely populated or high-value coastal areas.

KBRA assigns a long-term rating of AA to the County of Erie, NY General Obligation Public Improvement Serial Bonds, Series 2025A and General Obligation Refunding Serial Bonds, Series 2025B. KBRA additionally affirms the long-term rating of AA for the County's outstanding General Obligation Bonds. The rating Outlook is Stable.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the June 2025 servicer reporting period. The delinquency rate among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) in June decreased to 7.3% from 7.4% in May. The total delinquent plus current but specially serviced loan rate (collectively, the distress rate) also decreased 31 basis points (bps) to 10.6%. After last month’s 204-bp increase in the distress rate, mixed-use saw a 419-bps decrease following the modification of the JPMCC 2022-NLP Portfolio loan.

KBRA announces the assignment of preliminary ratings to eight classes of COMM 2025-167G, a CMBS single-borrower securitization. The collateral for the transaction is a $247.0 million fixed rate, interest-only first lien mortgage loan. The fixed-rate loan has a five-year term and requires monthly interest-only payments based on an assumed interest rate of 6.70%. The loan is secured by the borrower’s fee simple interest in 167 North Green Street, a 17-story, Class-A, LEED Gold office tower containing 638,794 sf. The building is located in the Fulton Market neighborhood of downtown Chicago. The property was developed in 2021 by the sponsors and as of June 2025, the property was 91.9% leased to 18 unique tenants. The five largest tenants by base rent consist of CCC Information Services (23.2% of total base rent), MoLo Solutions (16.1%), WeWork (14.4%), Builders Vision (8.3%), and Kroll (Duff & Phelps) (7.8%). Together, these top five tenants account for 69.8% of total base rent and 65.7% of the total sf.

KBRA assigns an A- insurance financial strength rating (IFSR) to Heritage Life Insurance Company (HLIC). The Outlook for the IFSR is Stable. HLIC is a stock life insurance company domiciled in Arizona that reinsures life and annuity products as well as supplementary contracts. Current ownership acquired the company in 2012.

KBRA releases a research report examining the resilience of its rated private equity (PE) and private credit (PC) firms.

KBRA releases research examining the potential implications for litigation finance ABS stemming from proposed measures under the Tackling Predatory Litigation Funding Act (TPLFA), which is currently included in the U.S. Senate’s One Big Beautiful Bill Act (OBBBA).

KBRA assigns a rating of BBB to TPG Twin Brook Capital Income Fund's ("TCAP" or "the company") $25 million, 6.05% senior unsecured notes due June 30, 2028, and $75 million, 6.40% senior unsecured notes due June 30, 2030. The rating Outlook is Stable. Proceeds will be used to repay secured debt.

KBRA assigns a BBB Insurance Financial Strength Rating (IFSR) to Apex Star Reciprocal Exchange ("Apex Star") and affirms the BBB IFSR for Star Vantage Reciprocal Exchange ("Star Vantage"). The Outlook for both ratings is Stable.

KBRA assigns a long-term rating of AA to the Alaska Municipal Bond Bank Authority General Obligation and Refunding Bonds, 2025 Series Three. KBRA also affirms the long-term rating of AA for the Authority's outstanding General Obligation Bonds.

KBRA assigns preliminary ratings to notes issued CPC Asset Securitization IV LLC (the “Issuer”). CPC Asset Securitization IV LLC will issue four classes of Series 2025-1 Notes totaling $85 million initially.

KBRA releases research examining last month's decline in retail sales amid continuing trade policy uncertainty and a gradually cooling labor market.

On June 26, 2025, Venerable Holdings, Inc. (“Venerable” or “the company”)(KBRA Issuer Rating: BBB/Stable) announced a transaction with Corebridge Financial, Inc. (Corebridge) pursuant to which it will reinsure approximately $51 billion of variable annuity business from American General Life Insurance Company (AGL) and The US Life Insurance Company in the City of New York (USL). At transaction closing, Venerable will also begin to assume variable annuity new business flow reinsurance from AGL. Additionally, Venerable will acquire Corebridge’s investment adviser, SunAmerica Asset Management, LLC (SAAMCo). Venerable’s general account assets are expected to increase from $17.5 billion to $22.5 billion with reinsured business growing nearly 94% to over $95 billion in separate account value. The acquisition of SAAMCo will more than triple assets under management to approximately $52 billion. The AGL reinsurance transaction is expected to close during 3Q2025 and the USL reinsurance transaction and the SAAMCo acquisition are expected to close during 4Q2025, subject to customary closing conditions.

KBRA assigns preliminary ratings to four classes of notes issued by Marlette Funding Trust 2025-1 (“MFT 2025-1”), a $337.80 million consumer loan ABS transaction.

On June 23, 2025, First Financial Bancorp (NASDAQ: FFBC) (“First Financial” or “the company”) (KBRA senior unsecured debt rating: BBB+ / Stable Outlook), the parent company of First Financial Bank, announced a definitive agreement to acquire Westfield Bancorp ("Westfield" - $2.2 billion of assets or 11% of pro forma total assets), the holding company of Westfield Bank, FSB, from the ultimate parent, Ohio Farmers Insurance Company, a property and casualty insurance group. Under the terms of the agreement, Westfield will merge with and into First Financial in a cash-and-stock transaction (80% cash / 20% stock) valued at approximately $325 million, or 1.4x price-to-tangible book value at announcement. The acquisition is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals. There are no anticipated changes to First Financial’s management team or Board of Directors, though select members of Westfield’s executive team are expected to assume leadership roles at the combined company.

KBRA assigns preliminary ratings to the Series 2025-1, Series 2025-2, and Series 2025-3 Notes (collectively, the Series 2025 Notes) issued by Concord Music Royalties, LLC (the Issuer). The Series 2025-1, Series 2025-2, and Series 2025-3 Notes represent the fourth, fifth, and sixth series of notes by the Issuer. All series of notes share the same collateral pool. No additional collateral will be contributed in conjunction with the issuance of the Series 2025 Notes. The proceeds from the Series 2025 Notes will be used to fully redeem the $1.750 billion Series 2022-1 Notes outstanding as well as for other general corporate purposes. Upon the redemption of the Series 2022-1 Notes, KBRA anticipates withdrawing the related ratings, and only the Series 2024-1 Notes and Series 2025 Notes will remain outstanding. KBRA anticipates affirming its ratings on the Series 2024-1, Class A Notes accounting for the issuance of the Series 2025 Notes and the execution of an amendment to the indenture.

KBRA assigns preliminary ratings to 31 classes of mortgage pass-through certificates from J.P. Morgan Seasoned Mortgage Trust 2025-1 (JPSMT 2025-1). The pool comprises 371 seasoned residential mortgages with an aggregate principal balance of approximately $268.1 million, as of the June 1, 2025, cut-off date. The top originators of this pool are Banc of California, National Association (23.8%) and United Wholesale Mortgage, LLC (18.5%). Approximately 51.0% of the pool has received a Qualified Mortgage (QM) designation.

KBRA assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to Wichita, Kansas-based Equity Bancshares, Inc. (NYSE: EQBK) (“the company”). KBRA also assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 to the company's primary subsidiary, Equity Bank ("the bank"). The Outlook for all long-term ratings is Stable.

KBRA assigns preliminary ratings to six classes of notes that will be issued from Mission Lane Credit Card Master Trust ("MLCCMT"), Series 2025-B (“MLANE 2025-B”), a credit card ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 40.57% for the Class A notes to 3.00% for the Class F notes. Credit enhancement on the notes consists of excess spread generated by the pool of credit card receivables, overcollateralization, subordination (except for the Class F Notes), and a reserve account (if funded after closing).

KBRA assigns a AAA rating, Stable Outlook to County of Chesterfield General Obligation Public Improvement Bonds Series 2025A and General Obligation Refunding Bonds Series 2025B. Concurrently, KBRA assigns a AAA rating, Stable Outlook to outstanding parity General Obligation Bonds.

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

KBRA assigns preliminary ratings to four classes of notes (five tranches) issued by GLS Auto Select Receivables Issuer Trust 2025-3 ("GSAR 2025-3"), an auto loan ABS transaction.

KBRA is pleased to announce the assignment of preliminary ratings to 33 classes of BANK5 2025-5YR15, a $556.3 million CMBS conduit transaction collateralized by 30 commercial mortgage loans secured by 67 properties. The collateral properties are located throughout 33 MSAs, of which the three largest are New York (22.9% of pool balance), Palm Beach County (9.9%), and Minneapolis (9.9%). The pool has exposure to all major property types, with three types representing more than 10.0% of the pool balance: office (27.2%), mixed-use (24.9%), and retail (22.7%). The loans have in-trust principal balances ranging from $2.7 million to $55.0 million for the largest loan in the pool, 150 & 120 Palmetto Crossed Group (9.9%), two adjacent, Class-A, suburban office properties located in Boca Raton, Florida that together contain 177,735 sf. The five largest loans, which also include Ridgedale Center (9.9%), 1535 Broadway (8.2%), 7 Penn Plaza (7.6%) and Turtle Creek Village (6.4%), represent 41.9% of the initial pool balance, while the top 10 loans represent 65.6%.

KBRA assigns preliminary ratings to five classes of notes issued by Foundation Finance Trust 2025-2 (“FFIN 2025-2”), an asset-backed securitization collateralized by unsecured consumer loans primarily used for home improvements.

KBRA assigns preliminary ratings to ten classes of mortgage-backed notes from BRAVO Residential Funding Trust 2025-NQM6 (BRAVO 2025-NQM6). The $366.3 million RMBS transaction is collateralized by a pool of 630 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 94.4% and 5.6% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM) (47.0%) or exempt (38.5%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA releases research analyzing the churn rate in commercial real estate (CRE) collateralized loan obligations (CLO) transactions. One of the main structural features of CRE CLO transactions is the ability for the manager to acquire new mortgage assets during a reinvestment period using principal proceeds received from loans that exit the transaction. This feature provides the issuer with a stable funding source and a more cost-effective way to fund the ongoing origination of transitional loans compared to static or lightly managed transactions. However, this churn of collateral can create uncertainty due to changes in collateral composition that may occur during the term of the transaction.

KBRA assigns a long-term rating of AA to the Washington Metropolitan Area Transit Authority (WMATA) Second Lien Dedicated Revenue Bond, Series 2025A. Concurrently, KBRA affirms the AA rating on outstanding parity Second Lien Dedicated Revenue Bonds, and affirms the AA+ rating on outstanding Dedicated Revenue Bonds (Senior Lien). The Outlook is Stable.

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

KBRA assigns preliminary ratings to six classes of refinancing notes issued by Hildene TruPS Securitization 3, Ltd. (HITR3), a securitization backed by a portfolio of bank and insurance TruPS CDO assets. The transaction originally closed in June 2020 as Hildene TruPS Securitization 2020-3 Ltd and had an initial refinancing in August 2021. This transaction will include an upsize of $43.7 million of new assets and resets the terms of the securitization including the stated maturity, non-call period, payment date when Turbo Payment Percentage is applied, portfolio and note notional balances and note interest rates.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-NQM11 Trust, a $650.1 million non-prime RMBS transaction. The underlying collateral, comprising 1,207 residential mortgages, is characterized by a notable concentration of alternative income documentation (86.5%) loans. Most of the loans are classified as non-qualified mortgages (Non-QM) (47.6%) or exempt (45.1%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA assigns preliminary ratings to 31 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2025-INV1 (JPMMT 2025-INV1), a prime RMBS transaction comprising 402 residential mortgages with an aggregate interest-bearing principal balance of approximately $330.3 million as of the cut-off date. The underlying collateral includes both conforming (40.5%) and non-conforming (59.5%) loans and is secured entirely by investment properties. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the WA original CLTV of 68.5%. The weighted average original credit score is 773, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to two classes of notes issued by HTS Fund II LLC (HTS 2025-1), a $155.3 million property tax lien ABS transaction. Proceeds from the Notes will be used to acquire a portfolio of 4,649 property tax loan assets from municipalities within Texas, including Harris County (21.9%), Dallas (13.3%), and Bexar (6.4%), with a redemptive value of approximately $138.2 million (the Initial Tax Loans) and a weighted average interest rate of 12.8%. HTS 2025-1 is a partially pre-funded transaction where the Notes are initially supported by $21.3 million deposited into two prefunding accounts (approximately 13.7% of the initial Note balance) that will be used to fund tax loans subject to certain eligibility criteria.

KBRA assigns preliminary ratings to eight classes of mortgage pass-through notes from GCAT 2025-NQM3 Trust, a $507.2 million non-prime RMBS transaction. The underlying collateral, comprising 926 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 753 and exhibit modest equity in each mortgaged property, with WA LTV and combined LTV (CLTV) ratios of 68.9% and 68.9%, respectively.

KBRA assigns preliminary ratings to 8 classes of Certificates from COOPR Residential Mortgage Trust 2025-CES2 (COOPR 2025-CES2), a $317.5 million RMBS transaction, as of the cut-off date, sponsored by Nationstar Mortgage LLC d/b/a Mr. Cooper and Loan Funding Structure VI LLC and consists almost entirely of 4,613 newly originated closed-end second lien mortgages (CES; 99.9%). The underlying pool is seasoned approximately 0.5 months and all loans are originated by Mr. Cooper. The collateral consists of fully amortizing, fixed-rate mortgages (FRMs) with predominantly 20-year (78.8%), 15-year (9.7%), 30-year (7.5%), and 10-year (3.6%) maturity terms.

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2025-CES6 (RCKT 2025-CES6).

KBRA releases two research reports that examine the performance of recurring revenue loans (RRL) while also providing an update on the key metrics within RRL securitizations.