Articles from Kroll Bond Rating Agency, LLC

KBRA assigns preliminary ratings to 5 classes of mortgage-backed certificates from Morgan Stanley Residential Mortgage Loan Trust 2025-SPL1 (MSRM 2025-SPL1). MSRM 2025-SPL1 is a seasoned RMBS transaction sponsored by Morgan Stanley Mortgage Capital Holdings LLC as seller/sponsor and includes a meaningful concentration of collateral that KBRA considers to be “non-prime.” The $419 million RMBS transaction is collateralized by a pool of 1,158 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 80.6% and 19.4% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM) (15.9%) or exempt (84.1%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA assigns a rating of BBB to Franklin BSP Capital Corp's ("FBCC" or "the company") $300 million, 6.00% senior unsecured notes due 2030. The rating Outlook is Stable. The proceeds will be used to repay existing indebtedness.

KBRA assigns a long-term rating of A to the City of Chicago, Illinois (the City) Chicago Midway International Airport (Midway or the Airport) Senior Lien Revenue and Revenue Refunding Bonds Series 2025A (AMT) and Series 2025B (Non-AMT). KBRA concurrently affirms the long-term A rating on the City's outstanding parity Senior Lien Revenue Bonds issued for Midway. The Outlook is Stable.

KBRA assigns preliminary ratings to 76 classes of mortgage pass-through notes from OBX 2025-J3 Trust, a $359.4 million prime RMBS transaction. The underlying collateral, comprising 302 fixed-rate, fully amortizing loans is characterized by moderate borrower equity, as evidenced by the WA original LTV of 73.8%, and has a WA original credit score of 786.

KBRA announces the assignment of preliminary ratings to six classes of BX 2025-OMG, a CMBS single-borrower securitization. The collateral for the transaction will be a $435.0 million 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. There is also expected to be $30.0 million of mezzanine debt in place. The loan is secured by the borrower’s fee simple interests in five multifamily properties totaling 1,717 units across three states. The properties are located in Massachusetts (56.1% of allocated loan amount), Florida (35.4%), and Georgia (8.5%), and were acquired by the sponsor between 2020 and 2021. As of September 2025, the portfolio was 92.4% occupied.

KBRA assigns a long-term rating of K1+ to the San Diego Unified School District (San Diego County, California): 2025 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2008, Series P-1) (Federally Taxable); 2025 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2018, Series I-1) (Federally Taxable); and, 2025 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2022, Series C-1) (Federally Taxable). KBRA additionally assigns a long-term rating of AAA to the District's: 2025 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2008, Series P-2); 2025 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2018, Series I-2); 2025 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2018, Series I-3); 2025 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2022, Series C-2); and, 2025 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2022, Series C-3). KBRA also affirms the long-term rating of AAA for the District's outstanding General Obligation Bonds. The rating Outlook is Stable.

KBRA affirms its insurance financial strength ratings (IFSR) of BBB+ for Nassau Life Insurance Company (NNY), Nassau Life and Annuity Company (NLA), Nassau Life Insurance Company of Kansas (NKS), and Nassau Re (Cayman) Ltd. (NKY). At the same time, KBRA affirms the BB+ issuer rating for Nassau Financial Group, L.P. (NFG) and the B+ long-term credit rating on NFG’s $100 million of Class C non-voting redeemable perpetual preferred units. KBRA has also assigned a BB+ rating to the recently issued $425 million 7.875% senior notes due 2030 of The Nassau Companies of New York (NCNY), which are fully and unconditionally guaranteed by NFG. The Outlook for all ratings is Positive.

KBRA assigns preliminary ratings to the Class A Notes, Class B Notes, Class C Notes, and Class D Notes issued by APL Finance 2023-1 Designated Activity Company and APL Finance 2023-1 LLC (together, APL Finance 2025-1), an aviation loan ABS transaction. APL Finance 2025-1 represents the second aviation loan ABS securitization serviced by Ashland Place Finance LLC (APL, the Company or the Servicer). The Company is owned by Davidson Kempner Capital Management LP (DKCM), and, together with DKCM, is comprised of over 500 individuals operating out of seven offices with headquarters in New York City. Affiliates of APL and DKCM will retain 100% of the equity of the subject transaction at closing.

KBRA assigns preliminary ratings to 56 classes of mortgage pass-through certificates from Citigroup Mortgage Loan Trust 2025-4 (CMLTI 2025-4), a prime residential mortgage-backed securities transaction collateralized by owner occupied primary and secondary properties. The underlying pool consists of 370 fixed-rate mortgages (FRMs) with an aggregate principal balance of approximately $345.5 million as of the cut-off date on September 1, 2025 and includes both non-agency (47.5%) and agency-eligible (52.5%) loans. 40.4% of the loans were originated by United Wholesale Mortgage, LLC and 73.7% of the loans will be serviced by Fay Servicing, LLC.

KBRA announces the assignment of preliminary ratings to seven classes of ESA 2025-ESH, a CMBS single-borrower securitization.

KBRA is pleased to announce the assignment of preliminary ratings to eight classes of Greystone 2025-HC4, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 36 months including a 60-day ramp-up period to acquire one pre-identified delayed closed asset.

KBRA assigns preliminary ratings to 6 classes of mortgage-backed notes from GS Mortgage-Backed Securities Trust 2025-CES2 (GSMBS 2025-CES2), a $296.5 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 12 months and comprises 4,157 loans, with AmeriSave Mortgage Corporation (34.4%) as the largest contributing originator. The collateral is characterized mostly by fully amortizing, fixed-rate mortgages (FRMs) with 10-year (4.9%), 20-year (61.3%) and 30-year (33.7%) terms.

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

KBRA assigns a long-term rating of AA to the Wayne County Airport Authority, MI: Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025D; Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025E; Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025F; Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025G; and Airport Revenue Refunding Bonds (Detroit Metropolitan Wayne County Airport), Series 2025H. KBRA additionally affirms the long-term rating of AA for the Authority's outstanding Airport Revenue Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to two classes of notes issued by TIP Solar ABS 2025 Issuer LLC. The transaction is collateralized by a diversified pool of 7,765 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 7.5%, consisting of the discounted payments of the leases and PPAs is approximately $236.0 million.

KBRA assigns preliminary ratings to seven classes of notes issued by Research-Driven Pagaya Motor Asset Trust 2025-5 and Research-Driven Pagaya Motor Trust 2025-5 (collectively “RPM 2025-5”), an auto loan ABS transaction. RPM 2025-5 has initial credit enhancement levels of 91.90% for the Class A-1 notes to 9.41% 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 assigns preliminary ratings to ten classes of mortgage-backed notes from OBX 2025-NQM18 Trust, a $743.2 million non-prime RMBS transaction. The underlying collateral, comprising 1,291 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 91.2% and 8.8% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 53.4%) or exempt (41.7%) 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 is pleased to announce the assignment of preliminary ratings to 18 classes of BMO 2025-C13, a $814.2 million CMBS conduit transaction collateralized by 47 commercial mortgage loans secured by 89 properties. The collateral properties are located throughout 30 MSAs, of which the three largest are New York (19.6% of pool balance), Dallas - Fort Worth (9.6%), and Boston (9.5%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: self-storage (29.7%), retail (24.7%), mixed-use (10.7%), office (10.2%), and multifamily (10.1%). The loans have in-trust principal balances ranging from $2.4 million to $77.5 million for the largest loan in the pool, BioMed MIT Portfolio (9.5%), comprised of eight life science lab/office properties totaling 1.3 million sf located in Cambridge, Massachusetts, directly adjacent to the Massachusetts Institute of Technology (MIT) campus. The five largest loans, which also include UOVO Evergreen (9.5%), 512 West 22nd Street (8.0%), Robertson's Creek (5.8%) and The Willard & The Met (5.1%), represent 37.8% of the initial pool balance, while the top 10 loans represent 57.2%.

KBRA assigns preliminary ratings to six classes of notes that will be issued from Mission Lane Credit Card Master Trust ("MLCCMT"), Series 2025-C (“MLANE 2025-C”), a credit card ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 39.79% 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 preliminary ratings to 8 classes of mortgage pass-through certificates from ADMT 2025-NQM4, a $435.4 million non-prime RMBS transaction. The underlying collateral, comprising 1,296 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 744 and exhibit notable equity in each mortgaged property, with a WA combined LTV (CLTV) ratio of 68.5%.

KBRA releases research analyzing the small business lending (SBL) sector. Small Business Administration (SBA) loans are often considered an engine that funds small businesses in the U.S.—with over $37 billion issued in fiscal year 2024 alone. However, various private sector capital sources play a critical role in the SBL sector, including asset-backed securities (ABS). ABS has become an increasingly prominent asset class within the structured finance market, driven by strong demand for alternative capital sources, the rise of fintech originators, and growing investor appetite for higher-yielding assets. Over just a decade, and excluding SBA transactions, KBRA has rated more than $14 billion in small business ABS in the U.S. Of these transactions, 71% were 144A transactions with published ratings (by volume), and 29% were private transactions with unpublished ratings. This report reviews issuance trends, collateral characteristics, and credit performance across this universe of transactions.

KBRA assigns a rating of BBB to FS KKR Capital Corp.'s (NYSE: FSK or "the company") $400 million, 6.125% senior unsecured notes due January 15, 2031. The notes will be swapped for SOFR +274.75 bps. The rating Outlook is Stable. The proceeds will be used for general corporate purposes.

KBRA assigns a BBB rating to North Haven Private Income Fund LLC's ("North Haven" or "the company" or "PIF") $300 million, 5.125% senior unsecured notes due in 2028. The rating Outlook is Stable. The proceeds will be used for general corporate purposes.

KBRA assigns preliminary ratings to eight classes of mortgage-backed notes from OBX 2025-NQM17 Trust, a $298.7 million non-prime RMBS transaction. The underlying collateral, comprising 541 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 91.9% and 8.1% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 48.4%) or exempt (41.7%) 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 preliminary ratings to three classes of notes issued by SunStrong Issuer 2025-1, LLC. The transaction is collateralized by a diversified pool of 64,024 leases associated with residential solar photovoltaic installations (PV Systems). The total Aggregate Discounted Solar Asset Balance (ADSAB) based on a discount rate of 7.25%, consisting of the discounted payments of the leases is approximately $1,039.1 million.

KBRA assigns preliminary ratings to six classes of notes issued by Wingspire Equipment Finance 2025-1 LLC (WEF 2025-1), an equipment ABS transaction.

KBRA releases research taking a closer look at how rated note feeders (RNF) and collateralized fund obligations (CFO) have gained significant momentum in 2025, already breaking all other issuance records. The growth reflects strong adoption by investors as effective and customizable means to access alternative assets and for alternative asset managers as viable fundraising tools.

KBRA assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to Luna Parent, Inc. ("Luna"). 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, Lead Bank ("Lead"). The Outlook for all long-term ratings is Stable.

KBRA assigns a long-term rating of AA to the Department of Water and Power of the City of Los Angeles (LADWP) Power System Revenue Bonds, 2025 Series C. The Outlook is Stable.

KBRA assigns preliminary ratings to 21 classes of mortgage-backed notes from RCKT Mortgage Trust 2025-CES9 (RCKT 2025-CES9).

KBRA assigns preliminary ratings to 8 classes of mortgage-backed certificates from Morgan Stanley Residential Mortgage Loan Trust 2025-NQM7 (MSRM 2025-NQM7). MSRM 2025-NQM7 is an RMBS transaction sponsored by Morgan Stanley Mortgage Capital Holdings LLC as seller/sponsor and includes a meaningful concentration of collateral that KBRA considers to be “non-prime.” The $417.8 million RMBS transaction is collateralized by a pool of 844 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 96.8% and 3.2% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM) (46.6%) or exempt (43.5%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA assigns preliminary ratings to 38 classes of asset-backed securities from Towd Point Mortgage Trust 2025-FIX1 (TPMT 2025-FIX1), a $350.3 million RMBS transaction. As of the Statistical Calculation Date, it is sponsored by CRM 2 Sponsor, LLC (CRM Sponsor) and FirstKey Mortgage, LLC (FirstKey or FKM Sponsor). The underlying pool consists of 3,814 fixed-rate, second lien HELOC mortgages (HELOC; 100%) originated entirely by Spring EQ, LLC (Spring EQ; 100.0%). The fixed-rate, HELOC collateral is fully amortizing, with 20-year (95.3%) and 15-year (4.7%) amortization periods. Additionally, all the loans have three-year HELOC draw periods. The pool has a non-zero weighted average original credit score of 733, an Original CLTV of 70.6, and is seasoned approximately nine months. As of the Statistical Calculation Date, the borrowers in the pool have drawn $350.3 million from a combined credit limit of $373.1 million for an aggregate utilization rate of 93.9%.

KBRA assigns a rating of BBB- with a Stable Outlook to the subordinated notes issued by QCR Holdings, Inc. (NASDAQ: QCRH) (“the company”). The notes consist of two subordinated debt offerings: Subordinated Notes, Due September 15, 2035 ($50 million) and Subordinated Notes, Due September 15, 2037 ($20 million). The $50 million note is callable on the fifth anniversary date of issuance and the $20 million note is callable on the seventh anniversary. The proceeds will be used to retire existing debt totaling $70 million.

KBRA announces the assignment of preliminary ratings to three classes of BFLD 2025-5MW, a CMBS single-borrower securitization. The collateral for the transaction is a $985.0 million portion of a $1.25 billion interest only mortgage loan. The fixed rate loan has a five-year term and requires monthly interest-only payments based on an assumed interest rate of 6.35%. The loan is secured by the borrower’s fee simple interest in 5 Manhattan West, a 16-story, Class-A office tower containing 1.7 million sf. The building is located between Manhattan West Street and West 31st Street and spans half of the block between 9th Avenue and 10th Avenue in the Hudson Yards section of the Far West neighborhood of Manhattan. The property was built in 1969 and renovated in 2017; as of August 2025, the property was 100.0% leased to 16 office and retail tenants. The five largest tenants by base rent consist of JP Morgan Chase (28.9% of base rent), Amazon (23.4%), Interpublic Group (12.5%), New York City - FISA (12.4%), and S&P Global (7.9%). Together, these top five tenants account for 85.0% of base rent and 83.3% of total sf.

KBRA assigns preliminary ratings to the Series 2025-3 Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2025-3 Notes) from Zayo Issuer, LLC (the Issuer), a communications infrastructure securitization.

KBRA assigns preliminary ratings to 12 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2025-HYB1 (SEMT 2025-HYB1), a prime RMBS transaction comprising 299 seasoned hybrid adjustable-rate mortgages (ARMs) with an aggregate principal balance of $347.4 million. The top originators of this transaction are Rocket Mortgage, LLC (19.6%), Cornerstone Capital Bank (12.5%) and Guaranteed Rate (10.8%)

KBRA, a leader in global credit ratings and research, is pleased to announce the appointment of Yasumitsu “Yasu” Iwasa as Head of Japan, underscoring its growth trajectory in Asia following the strategic establishment of its Tokyo office in January 2025.

KBRA assigns preliminary ratings to eight classes of mortgage pass-through notes from GCAT 2025-NQM5 Trust, a $365.8 million non-prime RMBS transaction. The underlying collateral, comprising 612 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 742 and exhibit modest equity in each mortgaged property, with WA LTV and combined LTV (CLTV) ratios of 71.6% and 71.6%, respectively.

KBRA assigns preliminary ratings to 67 classes of mortgage-backed notes from GCAT 2025-INV4 Trust. The GCAT 2025-INV4 mortgage loans are secured by first liens on non-owner occupied (NOO) investor properties and second homes. The loans were underwritten to agency guidelines. The pool comprises 1,057, first-lien, fixed rate residential mortgage loans as of the cut-off date. The pool is characterized by moderate borrower equity in each mortgaged property, as evidenced by the WA original LTV of 78.1%. The weighted average original credit score is 765, which is within the prime mortgage range.

KBRA, a global full-service credit rating agency, today announced the appointment of Rebecca Ebert as Global Head of Regulatory and Government Affairs. In this newly established leadership role, Rebecca will oversee KBRA’s global regulatory strategy and government relations, focusing on expanding international regulatory approvals and strengthening public policy engagement to support long-term business growth.

KBRA assigns an A+ long-term rating, with a Stable Outlook to Chicago O'Hare International Airport (O'Hare) General Airport Senior Lien Revenue Bonds (GARBs), Series 2025A (AMT) and Series 2025B (Non-AMT) issued by the City of Chicago (the City). Concurrently KBRA affirms the long-term A+ rating, with a Stable Outlook on the City's approximately $10.8 billion of currently outstanding O'Hare GARBs.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from OBX 2025-NQM16 Trust, a $708.5 million non-prime RMBS transaction. The underlying collateral, comprising 1,262 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 91.1% and 8.9% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 52.8%) or exempt (37.0%) 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 releases research evaluating the current landscape of bank mergers and acquisitions (M&A) and the potential implications for credit ratings.

KBRA assigns a long-term rating of AAA to The County of Cook, Illinois Sales Tax Revenue Bonds, Series 2025. KBRA additionally affirms the long-term rating of AAA for the County's outstanding Sales Tax Revenue Bonds. The rating Outlook is Stable.

KBRA, a global full-service credit rating agency, today announced the appointment of three senior executives to newly expanded leadership roles. These strategic appointments highlight the company’s continued commitment to its next phase of growth, operational excellence, and delivering market-leading insights to investors and market participants worldwide.

KBRA, a global full-service credit rating agency, today announced the appointment of Ira Powell, formerly Chief Operating Officer, as Vice Chairman. In this new role, Ira will continue to support KBRA’s long-term strategic direction while serving in a broader advisory position.

KBRA assigns preliminary ratings to one class of notes from Driven Brands Funding LLC, Series 2025-1 (Driven 2025-1 or Series 2025-1). In conjunction with the issuance of the Series 2025-1 Notes, the Series 2019-1 Class A-2 Notes and Series 2022-1 Class A-2 Notes are expected to be repaid at which time KBRA will withdraw the ratings. At that time, KBRA also 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 assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to Middletown, New York-based Orange County Bancorp, Inc. (NASDAQ: OBT) ("Orange" or "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 to its main subsidiary, Orange Bank & Trust Company ("the bank"). The Outlook for all long-term ratings is Stable.

KBRA announces the assignment of preliminary ratings to seven classes of MAC 2025-801B, a CMBS single-borrower securitization. The collateral for the transaction will be a $229.0 million floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and will require monthly interest-only. The loan will be secured by the borrower’s fee simple interest in 801 Brickell, a 28-story, Class-A, LEED Gold certified office tower containing 414,636 sf. The building is located in the Brickell neighborhood of downtown Miami. The property was developed in 1984 and acquired by the sponsors in October 2023 and as of September 2025, the property was 85.9% leased to 37 unique tenants. The five largest tenants by base rent consist of GSA (8.7% of total base rent), Galderma Laboratories, L.P. (8.6%), MasterCard (8.2%), Venable (6.8%), and Varonis (6.8%). Together, these top five tenants account for 39.0% of total base rent and 32.4% of the total sf.

KBRA assigns preliminary ratings to two series of notes issued by Navigator 2025-1 Aviation Limited and Navigator Aviation (Warehouse) II LLC (Navigator 2025-1), an aviation ABS transaction. Navigator 2025-1 represents the eighth aviation ABS transaction serviced by Dubai Aerospace Enterprise (DAE) Ltd. The Company is comprised of 200 employees across six offices with headquarters in Dubai.

KBRA releases research analyzing the growing presence and credit performance of non-U.S. citizen borrowers in private-label residential mortgage-backed securities (PLS).

KBRA assigns preliminary ratings to 8 classes of Certificates from COOPR Residential Mortgage Trust 2025-CES3 (COOPR 2025-CES3), a $560.4 million RMBS transaction, as of the cut-off date, sponsored by Nationstar Mortgage LLC d/b/a Mr. Cooper and Loan Funding Structure V LLC and consists almost entirely of 7,919 newly originated closed-end second lien mortgages (CES; 99.9%). The underlying pool is seasoned approximately 1.2 months and all loans are originated by Mr. Cooper. The collateral consists of fully amortizing, fixed-rate mortgages (FRMs) with predominantly 20-year (79.0%), 15-year (8.6%), 30-year (7.6%), and 10-year (4.5%) maturity terms.

KBRA assigns a long-term rating of AA to the Metropolitan Transportation Authority, NY ("MTA" or "the Authority") Transportation Revenue Refunding Green Bonds, Series 2025B (Climate Bond Certified). The Outlook is Stable. Proceeds will refund certain outstanding MTA Transportation Revenue Bonds ("TRBs") and Dedicated Tax Fund Bonds and certain outstanding TBTA Payroll Mobility Tax Bonds.

KBRA assigns preliminary ratings to three classes of notes issued by Sunrun Lucius Issuer 2025-3, LLC. The transaction is collateralized by a diversified pool of 29,929 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 7.5%, consisting of the discounted payments of the leases and PPAs is approximately $694.3 million.

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

KBRA assigns preliminary ratings to 64 classes of mortgage-backed notes from PMT Loan Trust 2025-INV9 (PMTLT 2025-INV9), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2025-INV9 comprises 1,039 fixed-rate mortgages (FRMs) with an aggregate principal balance of $398.8 million as of the September 1, 2025 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (76.5%) and second homes (23.5%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 74.2%. 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-DSC3 (MSRM 2025-DSC3). MSRM 2025-DSC3 is an 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 $365.7 million pool, consisting of 1,123 rental-property mortgages, is characterized by a moderate original combined loan-to-value (CLTV) ratio of 69.0%. All of the loans in the pool are exempt from the ATR/QM rule due to being originated for business purposes.

KBRA assigns preliminary ratings to six classes of notes issued from Avant Credit Card Master Trust (the "Master Trust"), Series 2025-1 (“AVCCT 2025-1”), a credit card ABS transaction. The ratings reflect the initial credit enhancement levels ranging from 45.40% for the Class A notes to 3.00% for the Class F notes. Credit enhancement on the notes consists of overcollateralization, subordination (except for the Class F Notes), a cash reserve account if funded after closing, and excess spread.

KBRA assigns preliminary ratings to 12 classes of Velocity Commercial Capital 2025-4 (VCC 2025-4) mortgage-backed certificates.

KBRA has assigned a long-term rating of BBB to the Unlimited Tax General Obligation Bonds (Dedicated Revenues) of the Board of Education of the City of Chicago, IL (Chicago Public Schools), Series 2025A. The Outlook remains Negative.

KBRA announces the assignment of preliminary ratings to six classes of SCG 2025-SNIP, a CMBS single-borrower securitization. The collateral for the transaction is a $930.0 million 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. There is also $95.0 million mezzanine debt in place. The loan will be secured by the borrowers’ fee simple and leasehold interests in 54 industrial assets and one excess land parcel. In total, the portfolio contains 8.2 million sf and the properties are located across five states: Nevada (33.9%), Arizona (28.0%), Colorado (21.4%), Maryland (12.0%), and Tennessee (4.7%). As of September 2025, the portfolio was 88.3% leased to over 230 unique tenants.

KBRA assigns preliminary ratings to four classes of notes issued by Upstart Securitization Trust 2025-3 (“UPST 2025-3”), a $320 million consumer loan ABS collateralized by unsecured consumer loans.

KBRA releases the August 2025 issue of CMBS Trend Watch.

KBRA releases its Business Development Company Ratings Compendium, which looks at results for the quarter ended June 30, 2025.

KBRA assigns preliminary ratings to 76 classes of mortgage pass-through notes from OBX 2025-J2 Trust, a $304.4 million prime RMBS transaction. The underlying collateral, comprising 241 fixed-rate, fully amortizing loans is characterized by moderate borrower equity, as evidenced by the WA original LTV of 73.1%, and has a WA original credit score of 784.

KBRA assigns preliminary ratings to 67 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2025-9 (SEMT 2025-9), a $595.3 million prime RMBS transaction. The pool is comprised of 486 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 72.0% and WA original CLTV of 72.0%.

On September 2, 2025, Wichita, KS-based Equity Bancshares, Inc. (NYSE: EQBK) ("Equity” or “the company"), and Omaha, NE-based Frontier Holdings, LLC (“Frontier”), parent company of Frontier Bank, jointly announced that they had entered into a definitive agreement pursuant to which Equity Bancshares, Inc. would acquire Frontier Holdings, LLC and Frontier Bank would merge with and into Equity Bank. The proposed transaction, valued at ~$120 million (P/TBV: 1.23x), incorporates a 75% stock / 25% cash consideration mix and is expected to close in 4Q25 pending regulatory approval.

KBRA assigns preliminary ratings to the Class A-F Notes, Class A Notes, Class B Notes, and Class C Notes issued by PK ALIFT Loan Funding 7 LP, an aviation ABS transaction (PKAIR 2025-2). PKAIR 2025-2 represents the fifth aviation loan ABS securitization serviced by Apollo PK Air Management (CLO) LP (Apollo PK, or the Servicer), an affiliate of PK AirFinance (the Company). The PK AirFinance platform, which was founded in 1983, provides financing against aircraft and aircraft engines. The Company’s principal office is in New York with additional offices in London, Luxembourg, Singapore, Tokyo, and Toulouse. As of December 31, 2024, PK AirFinance has originated over $40 billion across 3,000 aviation loans since inception and has a managed portfolio of approximately $3.5 billion secured by approximately 275 aircraft and engines operated by 80 airlines in more than 45 countries. PK AirFinance will retain 100% of the equity of the subject transaction at closing.

KBRA assigns a preliminary rating to one class of notes issued by NYCTL 2025-A Trust, a $172.5 million property tax lien ABS transaction. Proceeds from the Notes will be used to acquire a portfolio of 3,915 property tax liens in New York City with a redemptive value of approximately $220.0 million and a weighted average interest rate of 9.5%. The $220.0 million principal balance largely consists of residential properties (74.0%), followed by commercial and industrial properties (22.4%), vacant land (3.3%), and miscellaneous land (0.3%). The transaction also features liens securing unpaid water rents, sewer rents, and sewer surcharges on certain applicable properties, which comprise approximately $27.1 million (12.3%) of the initial tax lien portfolio. These liens maintain the same first-priority position as traditional property tax liens.

KBRA assigns preliminary ratings to 12 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-6 and Pagaya AI Debt Trust 2025-6 (collectively “PAID 2025-6”), an unsecured consumer loan ABS transaction. PAID 2025-6 has initial hard credit enhancement levels of 82.04% for the Class A-1 Notes to 1.46% 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 38 classes of mortgage pass-through certificates from Provident Funding Mortgage Trust 2025-4 (PFMT 2025-4).

KBRA assigns a rating of BBB to Kayne Anderson BDC, Inc.'s (NYSE: KBDC or "the company") $40 million floating rate senior unsecured notes due 2028, $60 million 5.80% senior unsecured notes due 2028, and $100 million 6.15% senior unsecured notes due 2030. The rating Outlook is Stable. The proceeds will be used to repay existing indebtedness and general corporate purposes.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from BRAVO Residential Funding Trust 2025-CES2 (BRAVO 2025-CES2), a $356.1 million RMBS transaction, sponsored by Loan Funding Structure LLC, an affiliate of PIMCO. BRAVO 2025-CES2 consists entirely of closed-end second lien mortgages (CES; 100.0%) and is seasoned approximately three months. The underlying pool comprises of 4,249 loans originated primarily by PennyMac Loan Services, LLC ( 40.8%), Rocket Mortgage, LLC (32.8%), and NewRez LLC (24.2%).

KBRA assigns preliminary ratings to 10 classes of mortgage pass-through notes from Verus Securitization Trust 2025-8 (VERUS 2025-8), a $579.1 million non-prime RMBS transaction. The underlying collateral comprises 1,165 residential mortgages and 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 737 and exhibit moderate equity in each mortgaged property, with an original combined LTV (CLTV) ratio of 71.4%. Approximately 42.2% of the loans were exempt from the ATR/QM rule due to being originated for business purposes or underwritten by a CDFI. The remaining portions of the pool were categorized as non-qualified mortgages (Non-QM) under the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule (31.1%), QM: Safe Harbor (25.2%), or categorized as QM: Rebuttable Presumption (1.5%).

KBRA assigns preliminary ratings to 11 classes of mortgage pass-through certificates from EFMT 2025-NQM4, a $384.6 million non-prime RMBS transaction. The underlying collateral, comprising 760 residential mortgages, is characterized by a notable concentration of alternative income documentation, with 80.6% of the loans underwritten using DSCR, bank statements, and asset underwriting documentation types. The majority of loans are either classified as non-qualified mortgages (59.4%) or exempt (40.6%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. LendSure Mortgage Corp. (LendSure), an affiliated originator of Ellington Management Group (“Ellington”) originated 41.3% of the pool.