Delhi, India
Delhi, India

Kroll is a corporate investigations and risk consulting firm based in Midtown Manhattan, New York City. It was established in 1972. It is the world's leading risk and security consultancy. Wikipedia.


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NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of American Credit Acceptance Receivables Trust 2017-1 (“ACAR 2017-1”), an auto loan ABS transaction. American Credit Acceptance Receivables Trust 2017-1 (“ACAR 2017-1” or “the Issuer”) will issue five classes of notes totaling $209 million that are collateralized by a pool of retail automobile contracts, made to subprime obligors and secured by new and used automobiles and motorcycles. The structure for ACAR 2017-1 includes a prefunding account that will be used to purchase additional receivables up to 22% of the initial cutoff date pool balance and expected balance of the subsequent receivables for up to 3 months after closing. The transaction has initial credit enhancement levels of 66.00% for the Class A Notes through 17.50% for the Class E Notes. Credit enhancement consists of excess spread, overcollateralization, subordination (except for the Class E Notes) and a reserve account funded at closing. American Credit Acceptance, LLC (ACA or “the Company”) issued its first securitization in October 2011 and since then has issued sixteen additional transactions in the total amount of approximately $3.31 billion. ACA is a subprime auto finance company that has been under current ownership since 2007. KBRA applied its U.S. Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and ACA’s historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing. For complete details on the analysis, please see KBRA’s Pre-Sale Report, American Credit Acceptance Receivables Trust 2017-1 Pre-Sale Report, which was published today at www.kbra.com. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).


NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases KCP special report entitled “With Sears, Macy’s and JCPenney, Two is Bad Company and Three’s a Crowd.” Late last week, JCPenney officially announced plans to shutter between 130 and 140 stores along with two distribution facilities over the near term. While returning to profitability in 2016 for the first time in six years, the company believes aggressive action is required to streamline operations and fuel sustainable, long-term growth. The strategic move, which was first intimated by the company in January 2017, is part of an initiative to shed unproductive store locations that generate minimal net cash flow, require extensive capital expenditures, and have significantly lower comparable sales than the company average. JCPenney will release the full list of closures in March 2017 and operations at the individual locations are anticipated to cease by the end of June 2017. JCPenney is the third major department store chain over the past year to announce nationwide closings. A total of 140 store closings would account for 13.7% of the company’s 1,012 store portfolio (as of January 30, 2016). Macy’s announced the closure of 100 stores in August 2016 and identified 68 of the locations in January 2017. The announced Macy’s closures accounted for 11.5% of the department store’s 870 locations (as of January 30, 2016). In late 2016 and early 2017, Sears Holding Corporation announced the expected closure of 150 stores including 108 Kmart locations and 42 Sears locations. The initiative is one of many aimed at boosting the company’s liquidity, which had declined to $432.0 million through the end of the third quarter of 2016. As of September 30, 2016, Sears Holdings operated approximately 1,500 Sears and Kmart stores. To view the report, click here. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).


NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) today released research report entitled “E-Commerce and Marijuana Light Up Warehouse Space.” In each of the major commercial real estate property type sectors, secular trends continue to influence demand and shape performance. Two evolving trends that are impacting the warehouse segment have been e-commerce, which continues to drive the space needs associated with the movement and storage of online retail goods, and a growing marijuana industry, which is increasing demand for both old and new warehouse properties in selected markets. In the coming weeks, we’ll highlight the secular trends that are transforming the landscape for other property types. With the emphasis on logistics and proximity to customers, retailers are now more often utilizing fulfillment centers or revamping existing distribution centers to accommodate e-commerce growth. This supply chain reconfiguration plays into the instant gratification that e-commerce shoppers want—shortening the time between the click on their computer and the knock on their door for the delivered goods. After Colorado voters approved the use and sale of recreational marijuana in November 2012, rental increases in Denver had double digit growth in 2013, 2014 and 2015. If the rent growth that Denver experienced is any indication of what could happen in California or other states where recreational marijuana has been legalized, the impact to warehouse space fundamentals could be even greater. KBRA does not expect to see CMBS loans collateralized by properties with tenants engaged in marijuana-related activities for as long as marijuana remains a Schedule I illegal narcotic under federal law. However, CMBS warehouse collateral that is located in markets where marijuana has been legalized should receive a positive spillover effect, as increased demand lifts market rents and property prices. To view the report, please click here. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).


News Article | February 23, 2017
Site: www.businesswire.com

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the assignment of preliminary ratings to the Class A notes, which are the sole class of securities issued in the VSD 2017-PLT1 transaction. VSD 2017-PLT1 is structured as a liquidation vehicle that monetizes recoveries from the assets to pay the rated notes. The transaction’s collateral is primarily comprised of performing loans (93.3% of the issuer’s basis), and also includes small exposures to non-performing loans (NPL) and real-estate-owned (REO) properties. Collectively, these equate to 201 assets, which have an aggregate unpaid principal balance (UPB) of $378.1 million and were acquired (191 assets) or originated (10 assets) by Värde Partners. Using the acquisition cost of the $299.6 million acquired assets and the UPB of the originated assets, the aggregate basis of the portfolio is $348.2 million (92.1% of UPB). The underlying collateral is comprised of commercial real estate properties (95.3% of the sponsor’s basis), land (4.5%) and single-family rental assets (0.2%). The top three state exposures are California (15.0%), Illinois (14.8%) and Texas (12.6%). The largest, top-ten, top-25 and top-50 relationships comprise 7.2%, 43.6%, 67.8%, and 84.2% of the pool’s acquisition basis, respectively. To evaluate and rate this transaction, KBRA followed a multi-step “ground-up” approach, which leveraged our commercial real estate methodologies. KBRA derived a “baseline value” for each collateral item using one or more methods. These included the income capitalization approach, comparable sales approach, as well as discounting third party valuation conclusions and the asset manager’s estimates of net recoveries. The baseline values were adjusted to derive KBRA’s baseline recovery proceeds, reflective of, among other items, the following: KBRA’s stressed resolution path and timeline, NOI captured from defaulted and REO assets, carry costs for non-income or negative-income producing assets, legal and foreclosure costs, and property sales costs. The baseline values and recovery proceeds were stressed further under the investment grade stress scenario. The resulting proceeds were applied to the transaction waterfall, while taking into account reserves, cash flow leakages and other structural elements, to determine our credit rating. This methodology is detailed in our publication entitled U.S. Liquidating Trust Rating Methodology for Pools of Distressed Commercial Real Estate, which was published on December 3, 2015, and can be accessed on our website. Overall, KBRA’s baseline recovery amounts were 83.9% of the UPB, 91.1% of the issuer’s acquisition basis, and 76.0% of the issuer’s projected net recovery amounts. For further details on KBRA’s analysis, please see our Presale Report, entitled VSD 2017-PLT1, which was published today at www.kbra.com. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).


NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has released a new research reported entitled “Mortgage Servicing Rights: Rising Yields Are Good.” The report makes the following key points: To view the full report, please click here. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP)


News Article | February 24, 2017
Site: www.businesswire.com

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) withdrew its ratings for six classes of Invitation Homes 2013-SFR1 (IH 2013-SFR1) single-family rental (SFR) pass-through certificates with an aggregate outstanding principal balance of $462.0 million. The transaction was the first US securitization collateralized by a loan secured by SFR homes managed by a large-scale institutional sponsor. It effectively launched the sector, and to date 29 KBRA-rated single-borrower deals totaling $16.6 billion have been issued that were initially collateralized by 115,680 homes. The ratings withdrawals follow the full repayment of the rated securities as reflected in the transaction’s February 2017 remittance report. The repayment of the certificates results in this deal being the fourth single-borrower SFR securitization to pay-off in full. All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms set forth in the offering documents that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found here. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).


News Article | March 1, 2017
Site: www.businesswire.com

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 16 classes of the JPMCC 2017-JP5 transaction (see ratings list below). JPMCC 2017-JP5 is a $1.1 billion CMBS conduit transaction collateralized by 43 commercial mortgage loans secured by 59 properties. On the securitization closing date, the transaction’s retaining sponsor, Starwood Mortgage Funding VI LLC, intends to comply with the US credit risk retention rules by having a majority owned affiliate, LNR Securities Holdings, LLC, purchase an “eligible horizontal retained interest” in the transaction. The eligible horizontal retained interest will represent at least 5.0% of the fair value of all the classes issued in the transaction. This is the first CMBS conduit transaction to utilize a horizontal risk retention structure. The underlying collateral properties are located in 22 states, with three state exposures that each represents more than 10.0% of the pool balance: California (20.3%), Texas (16.5%), and Hawaii (11.0%). The pool has exposure to most of the major property types, with four that each represents more than 10.0% of the pool balance: office (38.1%), retail (19.3%), lodging (19.0%) and mixed use (17.5%). The loans have principal balances ranging from $2.8 million to $80.0 million for the largest loan in the pool, Hilton Hawaiian Village (7.3%), a 2,860-key full-service hotel located on Waikiki Beach in Honolulu, Hawaii, approximately 2.7 miles southeast of the city’s CBD. The five largest loans, which also include Moffett Gateway (7.3%), Dallas Design District (6.9%), Fresno Fashion Fair Mall (6.3%), and Riverway (5.9%), represent 33.7% of the initial pool balance, while the 10 largest loans comprise 56.6%. KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 7.1% 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, 39.3% less than third party appraisal values. The pool has an in-trust KLTV of 96.8% and an all-in KLTV of 105.6%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan, which are then used to assign our credit ratings. For complete details on the analysis, please see our pre-sale report, JPMCC 2017-JP5 published today at www.kbra.com. The report includes our KBRA Comparative Analytic Tool (KCAT). KCAT is an easy to use, Excel based workbook that provides the following information: *Notional balance **These classes are expected to be retained by a majority-owned affiliate of the transaction’s retaining sponsor and to constitute an “eligible horizontal residual interest” in accordance with the US risk retention requirements. All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s asset-level representations, warranties and enforcement mechanisms set forth in the related offering documents when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled CMBS: JPMCC 2017-JP5 Representations & Warranties Disclosure Report. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).


NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes (the “Notes”) issued by Kabbage Asset Securitization LLC. This transaction is Kabbage, Inc.’s (“Kabbage” or the “Company”) second securitization and it is expected that the proceeds of the sale of the Notes will be used to refinance the Company’s existing securitization. Founded in 2009, Kabbage is a financial technology company that uses its proprietary risk scoring models, transactional data, technology systems and platform to provide fully automated, online access to business loans for small- and medium-sized businesses. The Kabbage business loan program is offered via Kabbage’s automated loan application, underwriting and servicing platform, www.kabbage.com. The Notes will be secured by a revolving pool of receivables consisting of (i) business loans or (ii) merchant cash advances. The transaction benefits from sufficient credit enhancement comprised of overcollateralization, subordination of the junior classes of Notes, a reserve account and excess spread, as well as a dynamic structure that accelerates principal payments on the Notes in the event of weak performance. The transaction features a 36-month revolving period during which time principal collections may be reinvested to purchase additional receivables, based on certain eligibility requirements. KBRA analyzed the transaction using KBRA’s General Rating Methodology for Asset-Backed Securities published on July 30, 2012. For complete details on the analysis, please see KBRA’s Pre-Sale Report, Kabbage Asset Securitization LLC, which was published today at www.kbra.com. All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled Disclosure is available at the following link: Kabbage Asset Securitization LLC Representations and Warranties Disclosure. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).


News Article | March 2, 2017
Site: www.businesswire.com

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to assign preliminary ratings to seven classes of the PFP 2017-3 transaction, a $567.4 million floating-rate commercial real estate collateralized loan obligation (CRE CLO) securitization. The underlying collateral consists of 11 non-recourse whole loans and 16 pari passu participation interests indexed to the one-month London Interbank Offered Rate (LIBOR). The loan assets have an initial aggregate cut-off date principal balance of $564.9 million and the trust collateral also includes $2.5 million of cash available for reinvestment. The related loans are secured by the fee and leasehold interests in 35 properties. Each of the pari passu participations has an unfunded companion participation that represents an unfunded future funding obligation which is held outside of the trust by the transaction’s sponsor. The unfunded companion participations have an aggregate balance of $53.2 million. During the reinvestment period, the issuer, at the direction of the directing holder, can use principal proceeds from optional prepayments, as well as the $2.5 million of cash collateral, to purchase certain eligible funded companion participations. KBRA’s analysis of the transaction involved a detailed evaluation of the underlying cash flows using our CMBS Property Evaluation Methodology and the application of our US CMBS Multi-Borrower Rating Methodology. The results of the analysis yielded KNCF for the underlying collateral properties that was, on average, 4.9% less than the issuer cash flow. KBRA applied our stressed capitalization rates to KNCF to arrive at valuations of the underlying properties. The KBRA values were, on average, 34.5% less than the appraiser’s respective as-is valuation. The resulting KBRA in-trust Loan to Value (KLTV) was 117.9%. The weighted average all-in KLTV for the loans was 121.2%. As part of our analysis of the transaction, we also reviewed and considered third party engineering and environmental reports, our analysts’ site visits of the collateral properties, and the transaction structure. For complete details on the analysis, please see our pre-sale report, PFP 2017-3 published today at 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. All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s asset level representations, warranties and enforcement mechanisms that are set forth in the offering document when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled CMBS: PFP 2017-3 Representations & Warranties Disclosure Report. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).


News Article | February 28, 2017
Site: www.businesswire.com

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) announced today the appointment of Stephen Kemmy to the role of Director within KBRA’s European RMBS group. Stephen previously worked as a Director at Fitch Ratings in London, within the Structured Finance group and covered bonds. He was primarily responsible for newly issued and existing ratings from the UK, Netherlands, Ireland and the Nordic countries. In addition, he worked on developing criteria for assessing Irish, Danish and Norwegian rating methodologies. Prior to working in structured finance, Stephen spent nearly 3 years working in KBC Bank Ireland plc as an Executive within the Credit Risk team and Treasury. Stephen holds an MBS in Finance from UCD Michael Smurfit School of Business and a BS in Accounting and Finance from Dublin Institute of Technology. “Stephen brings reputable knowledge in the market as KBRA continues to expand its footprint globally and to grow its business lines. Stephen will be focused on mortgage and housing finance across Europe helping us execute our existing pipeline and develop new ratings and research,” said Mauricio Noé, who is leading KBRA’s expansion into Europe. Please visit www.kbra.com for more details. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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