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) releases research report entitled “Comment on Capital Bank Financial Corp. Merger with First Horizon National Corp.” The report makes the following key points: The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016. Please click here to view the 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 | May 5, 2017
Site: www.businesswire.com

NEW YORK--(BUSINESS WIRE)--On May 2, 2017, the shareholders of Italy’s flag carrier, Alitalia, voted unanimously to file for extraordinary administration in Italy, a form of creditor protection under Italian law that is similar to U.S. Chapter 11 bankruptcy-code protection. An extraordinary administration typically seeks to restructure large-scale organizations burdened with significant debt and other liabilities. Under Italian law, administrators will be appointed to determine whether the airline should reorganize or be liquidated for the benefit of creditors. Alitalia was the subject of a bail-out in 2014 by means of a significant capital injection from Etihad Airways, with goals of achieving profitability during 2017. However, increased competition on routes operated by U.K.-based carriers and significantly higher labor costs led to the ultimate failure of Etihad Airways’ profitability goals for Alitalia. During late April 2017, labor unions representing Alitalia workers rejected a plan that called for job reductions and pay cuts for workers. Following the failure of these negotiations, Etihad Airways signaled an unwillingness to invest additional capital into the company and shareholders ultimately agreed to file for extraordinary administration proceedings on May 2, 2017. Over the past year, Kroll Bond Rating Agency (KBRA) has closely monitored the developments relating to Alitalia through discussions with aircraft lessors/servicers and industry participants. As noted in the table below, several KBRA-rated aircraft ABS transactions have exposure to Alitalia. At this time, KBRA does not view Alitalia’s extraordinary administration filing as having an impact on the ratings of the securities related to KBRA-rated aircraft ABS transactions. However, KBRA will continue its active dialogue with aircraft lessors and industry participants as the events relating to Alitalia’s possible reorganization continue to develop. KBRA’s Financial Institutions Group will provide commentary in the near future regarding the impact of Alitalia’s extraordinary administration filing on various lessors. To view the full comment, 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)--On May 2, 2017, the shareholders of Italy’s flag carrier, Alitalia, voted unanimously to file for extraordinary administration in Italy, a form of creditor protection under Italian law that is similar to U.S. Chapter 11 bankruptcy-code protection. An extraordinary administration typically seeks to restructure large-scale organizations burdened with significant debt and other liabilities. Under Italian law, administrators will be appointed to determine whether the airline should reorganize or be liquidated for the benefit of creditors. Alitalia was the subject of a bail-out in 2014 by means of a significant capital injection from Etihad Airways, with goals of achieving profitability during 2017. However, increased competition on routes operated by U.K.-based carriers and significantly higher labor costs led to the ultimate failure of Etihad Airways’ profitability goals for Alitalia. During late April 2017, labor unions representing Alitalia workers rejected a plan that called for job reductions and pay cuts for workers. Following the failure of these negotiations, Etihad Airways signaled an unwillingness to invest additional capital into the company and shareholders ultimately agreed to file for extraordinary administration proceedings on May 2, 2017. Over the past year, Kroll Bond Rating Agency (KBRA) has closely monitored the developments relating to Alitalia through discussions with aircraft lessors/servicers and industry participants as well aircraft manufacturers and has published a comment with respect to the impact on our rated ABS transactions. KBRA rates a number of aircraft lessors and is also following the developments with Alitalia’s restructuring and its impact on the lessors, some of whom have notable exposure to the airline. KBRA is also considering the potential effects of this filing with respect to certain aircraft types that may be under more pressure, given the airline’s potential plans for decreasing participation in certain markets. As such, KBRA will publish a more comprehensive commentary on the aircraft lessors and the market as a whole once more data is gathered from relevant market participants. 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 | May 8, 2017
Site: www.businesswire.com

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to 17 classes of the CFCRE 2017-C8 transaction (see ratings list below). CFCRE 2017-C8 is a $644.7 million CMBS conduit transaction collateralized by 43 commercial mortgage loans secured by 67 properties. The underlying collateral properties are located in 25 states, with four state exposures each representing more than 10.0% of the pool: California (14.2%), Ohio (13.3%), Texas (11.9%), and New York (11.1%). The pool has exposure to all the major property types, with three that each represents more than 15.0% of the pool balance: office (28.4%), retail (25.9%), and lodging (18.8%). The loans have principal balances ranging from $2.5 million to $55.0 million for the largest loan in the pool, Ohio Valley Plaza (8.5%), a 657,669 sf anchored retail center located in St. Clairsville, Ohio, approximately 70 miles southwest of Pittsburgh, Pennsylvania. The five largest loans, which also include Pershing Square Building (6.8%), Crossings at Hobart (6.6%), Yeshiva University Portfolio (5.4%), and 380 Lafayette Street (5.0%), represent 32.5% of the initial pool balance, while the 10 largest loans represent 53.2%. 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, 40.1% less than third party appraisal values. The pool has an in-trust KLTV of 100.6% and an all-in KLTV of 100.7%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings. For complete details on the analysis, please see our presale report, CFCRE 2017-C8 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 **The RR Interest is intended to satisfy the definition of an eligible vertical interest under the US credit risk retention rules and will be retained by a majority-owned affiliate of Rialto Mortgage Finance, LLC. The initial aggregate amount of the RRI Interest will be equal to at least 5.0% of the certificate balance, notional amount or percentage interest, as applicable, of each class of non-residual certificates issued by the trust. 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 is contained in the report entitled CMBS: CFCRE 2017-C8 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 | May 8, 2017
Site: www.businesswire.com

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to seven classes of Olympic Tower 2017-OT, a $480.0 million CMBS single borrower transaction (see ratings list below). The collateral for the securitization consists of a $480.0 million portion of a $760.0 million single, non-recourse, first lien, fixed-rate mortgage loan that is secured by the borrower’s leasehold interest in a 525,372 sf, mixed-use retail and office condominium, comprised of the office and retail portions of a 52-story mixed-use tower and three adjoining five and seven-story buildings located on Fifth Avenue between 51st and 52nd Streets. The property, which was constructed in 1975 and renovated in 2013 and 2016, contains 401,592 sf of office space, 112,452 sf of retail space, and 11,328 sf of storage space. As of April 2017, the property was 98.8% leased to 22 tenants, the five largest of which account for 75.0% of total base rent. The five largest tenants by base rent at the property are Cartier, a High Quality Credit Worthy Tenant (HQCWT); NBA Properties, Inc. (HQCWT), Versace USA, Inc. (HQCWT), Richemont North America (HQCWT), and Armani Exchange. The loan sponsors are OMERS Administration Corporation (67.0% ownership) and Crown Acquisitions (33.0% ownership). KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flow using our CMBS Property Evaluation Methodology, and the application of our CMBS Single Borrower and Large Loan Rating Methodology. The results of our analysis yielded a KBRA net cash flow (KNCF) of $64.1 million. To value the property, we applied a blended capitalization rate of 6.75% to arrive at a KBRA value of $950.1 million and a KBRA Loan to Value (KLTV) of 80.0%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental and appraisal reports; the results of our site inspection of the property, and legal documentation review. For further details on KBRA’s analysis, please see our Pre-Sale Report, entitled Olympic Tower 2017-OT, which was 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 final 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 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 Olympic Tower 2017-OT Representations & 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).


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).


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 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 | 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).


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).

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