Articles from Kroll Bond Rating Agency, LLC

KBRA assigns preliminary ratings to four classes of notes issued by GreenSky Home Improvement Issuer Trust 2026-REV1 ("GSKY 2026-REV1"), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements.

KBRA assigns a long-term rating of AAA to the State of Connecticut Special Tax Obligation Refunding Bonds, Transportation Infrastructure Purposes, 2026 Series A and affirms the AAA long-term rating for outstanding Special Tax Obligation Bonds, Transportation Infrastructure Purposes. The rating Outlook is Stable.

KBRA, a global full-service credit rating agency, is pleased to announce it was named both Securitization Rating Agency of the Year and ABS Rating Agency of the Year at GlobalCapital’s U.S. Securitization Awards 2026 ceremony held on May 14 in New York City.

KBRA assigns a long-term rating of AAA to the Tri-County Metropolitan Transportation District of Oregon's ("TriMet") Senior Lien Payroll Tax Revenue ("PRT") Bonds, Series 2026A. Concurrently, KBRA affirms the long-term rating of AAA on TriMet's outstanding parity lien PRT Bonds. The Outlook is Stable.

KBRA releases its first-quarter 2026 U.S. Bank Compendium, providing the latest view of the U.S. banking industry and analysis of 1Q26 results for publicly traded U.S. banks with KBRA ratings.

KBRA releases the April 2026 issue of CMBS Trend Watch.

KBRA assigns preliminary ratings to 10 classes of mortgage pass-through certificates from ADMT 2026-NQM4, a $407.0 million non-prime RMBS transaction sponsored by Atlas A&D Opportunity Fund III LP, with the majority of the loans being originated by A&D Mortgage, LLC or one of its qualified correspondents. The underlying collateral, comprising 979 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 752 and exhibit notable equity in each mortgaged property, with a WA combined LTV (CLTV) ratio of 68.4%. Notably, 4.1% of the loans are second-lien loans.

KBRA assigns preliminary ratings to four classes of notes totaling $359.87 million issued by Tesla Sustainable Business Energy Trust 2026-1 ("TSET 2026-1" or the "Issuer"), an ABS transaction secured by residential solar retail installment contracts ("RICs").

KBRA releases research that examines the One Big Beautiful Bill Act's (OBBBA) potential to increase student loan ABS issuance beginning in July 2026 by creating a structural funding gap in graduate education. By capping federal borrowing and eliminating Graduate PLUS (Grad PLUS) for new borrowers, the legislation will shift incremental loan demand toward private lenders—some of which rely on securitization as a core funding source. In this report, we examine the size of the funding gap and discuss how the legislation could drive higher student loan ABS new issue volumes.

KBRA releases research examining cash flow metrics, including cash flow from operations (CFO), CFO-to-EBITDA, CFO-to-Interest, and CFO-to-Capital Expenditures, for its portfolio of more than 2,400 unique global middle market sponsor-backed borrowers assessed for the last 12 months (LTM) ended March 31, 2026. These metrics, although nonstandard, provide a deeper view of the portfolio and reveal a story that differs from the industry-standard metrics analyzed in the quarterly published surveillance compendium.

KBRA releases research on performance and trends of the music ABS sector.

KBRA assigns preliminary ratings to 15 classes of notes issued by Research-Driven Pagaya Motor Asset Trust 2026-3 and Research-Driven Pagaya Motor Trust 2026-3 (collectively “RPM 2026-3”), an auto loan ABS transaction. RPM 2026-3 has initial credit enhancement levels of 96.93% for the Class A-1 notes to 5.75% for the Class E-2 notes. Credit enhancement is comprised of overcollateralization (“O/C”), subordination of junior note classes (except for the Class E-2 notes), a cash reserve account (including the capitalized interest amount) funded at closing, and excess spread.

KBRA assigns a long-term rating of AA to the Triborough Bridge and Tunnel Authority (MTA Bridges and Tunnels) General Revenue Bonds, Series 2026A consisting of General Revenue Bonds, Subseries 2026A-1 and General Revenue Refunding Bonds, Subseries A-2.

KBRA assigns the long-term ratings on the following Clark County, NV Bonds:

KBRA assigns preliminary ratings to five classes of notes issued by Upgrade Master Pass-Thru Trust, Series 2026-ST2 (“UMPT 2026-ST2”), a consumer loan ABS transaction. Credit enhancement consists of overcollateralization, subordination of junior note classes (except for the Class E notes), a cash reserve account, and excess spread.

KBRA assigns preliminary ratings to nine classes of mortgage-backed notes from OBX 2026-HYB1 Trust, a prime RMBS transaction comprising 385 seasoned hybrid adjustable-rate mortgages (ARMs) with an aggregate principal balance of $309.4 million. The loans possess initial fixed-rate periods of ten years (32.2%), seven years (50.2%), five years (17.5%), and three years (0.2%). Approximately 85.0% of the pool has been designated as a Qualified Mortgage (QM). Non-QM loans and loans for which ATR status could not be determined (TPR status of ATR Risk or QM Risk) make up 12.5% and 0.8% of pool, respectively. Meanwhile, loans exempt from the Ability-to-Repay (ATR)/QM Rule represent 1.7% of the pool. The top originators of this transaction are Ally Bank (73.4%) and Zions Bancorporation, N.A. (16.3%).

KBRA releases research examining the potential impact of Medallia's looming default on the private credit universe. Although this represents one of the larger term loans in the direct lending market—at nearly $3 billion—we conclude that KBRA-rated vehicles with exposure, as well as the broader direct lending market, are well positioned to absorb any potential losses.

KBRA assigns preliminary ratings to Qdoba Funding LLC (the Issuer), Series 2026-1 (Qdoba 2026-1), Class A-1 LR, Class A-1 VFN, and Class A-2 notes, a whole business securitization (WBS). Qdoba 2026-1 represents the issuer’s second securitization in which Qdoba Restaurant Corporation (Qdoba, the Manager, or the Company) contributed substantially all of its revenue-generating assets to the Issuer as collateral for the offered notes. In conjunction with the issuance of the Series 2026-1 Notes, the Series 2023-1 A-1 VFN, A-1 LR Notes, and A-2 Notes are expected to be repaid, at which time KBRA expects to withdraw the ratings.

KBRA assigns preliminary ratings to six classes of notes that will be issued from Channel EF 2026-1, LLC (CPEF 2026-1), an equipment ABS transaction. Credit enhancement includes excess spread, a reserve account, overcollateralization (O/C) and subordination for senior classes. The O/C is subject to a target equal to 13.80% of the current pool balance and a floor equal to 0.50% of the initial pool balance. The reserve account is funded at 1.00% of the initial pool balance and is non-amortizing.

KBRA assigns preliminary ratings to 74 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-INV3 (SEMT 2026-INV3). The transaction consists of 1,275 mortgages with an aggregate principal balance of $507.1 million as of the May 1, 2026 cut-off date. The collateral is characterized by a weighted average (WA) original credit score of 768 and moderate borrower equity, with a WA original LTV and WA original CLTV of 70.9%.

As widely reported and stated by several of the company’s investors, creditors will likely be taking control of Medallia, Inc. following several years of performance headwinds and the sponsor’s decision not to provide additional equity. Although this represents one of the larger term loans in the direct lending market—at nearly $3 billion—we conclude that KBRA-rated vehicles with exposure, as well as the broader direct lending market, are well positioned to absorb any potential losses.

KBRA assigns a long-term rating of AA+ to the Harris County Hospital District's, TX (the "District") Series 2026, Limited Tax and Refunding Bonds. Concurrently, KBRA affirms the long-term AA+ rating for outstanding limited tax bonds. The Rating Outlook is Stable.

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2026-CES5 (RCKT 2026-CES5).

KBRA is pleased to announce the assignment of preliminary ratings to nine classes of BSPDF 2026-FL4, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months including a 90-day ramp-up period.

KBRA assigns preliminary ratings to five classes of notes issued by Reach ABS Trust 2026-2 (“Reach 2026-2”), an unsecured consumer loan ABS transaction. Credit enhancement consists 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 58 classes of mortgage-backed certificates from EFMT 2026-AE3. EFMT 2026-AE3 is a $337.9 million RMBS transaction, as of the cut-off date, sponsored by EFMT Sponsor LLC. The pool is secured entirely of first liens on non-owner occupied (NOO) investor properties (75.2%) and second homes (24.8%) underwritten to agency guidelines. The underlying pool is seasoned approximately three months and comprises 902 loans. Majority of loans are originated and serviced by PennyMac Loan Services, LLC.

KBRA assigns preliminary ratings to four classes of notes (the “Notes”) issued by Mulligan Asset Securitization III LLC, Series 2026-1.

KBRA announces the assignment of preliminary ratings to four classes of BX 2026-CIP, a CMBS single-borrower securitization. The collateral for the transaction is a $1.3 billion 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. The loan will be secured by the borrower’s fee simple interests in 80 industrial assets (93.3%), and the borrower’s leasehold interest in three industrial assets (6.7%). In total, the portfolio contains 13.0 million sf and the properties are located across 15 states, the five largest of which are Florida (17 properties, 17.9% of ALA), Illinois (10, 12.5%), California (10, 10.7%), Texas (five, 9.3%), and Ohio (five, 8.3%). As of May 2026, the portfolio was 90.2% leased to over 150 unique tenants.

KBRA assigns preliminary ratings to eight classes of mortgage-backed notes from BRAVO Residential Funding Trust 2026-CES1 (BRAVO 2026-CES1), a $344.7 million RMBS transaction, sponsored by Loan Funding Structure LLC, an affiliate of PIMCO. BRAVO 2026-CES1 consists entirely of closed-end second lien mortgages (CES; 100.0%) and is seasoned approximately three months. The underlying pool comprises of 3,577 loans originated primarily by loanDepot.com (70.3%) and PennyMac Loan Services, LLC (18.5%).

KBRA assigns preliminary ratings to 13 classes of mortgage-backed notes from OBX 2026-NQM7 Trust, a $932.4 million non-prime RMBS transaction. The underlying collateral, comprising 1,667 residential mortgages, with 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; 43.3%) or exempt (48.8%) 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 discussing the impact of the One Big Beautiful Bill Act’s (OBBBA) effect on states and how they are positioned to address oncoming challenges. A history of state balances is reviewed and juxtaposed against estimated cost shifts related to the Supplemental Nutrition Assistance Program (SNAP).

KBRA releases a recap of its RMBS Breakfast Forum: Outlook, Products, and Performance Drivers, an event focused on the key trends shaping today’s U.S. residential mortgage-backed securities (RMBS) market.

KBRA assigns preliminary ratings to four classes of notes issued by Hildene TruPS Securitization 7, Ltd. (HITR7), a securitization backed by a portfolio of bank and insurance TruPs CDO assets.

KBRA releases research on enterprise fiber, a growing segment of the fiber asset-backed securities (ABS) market. Since KBRA rated the first public fiber-backed securitization, the market has expanded beyond residential broadband to include a broader range of enterprise (B2B) fiber services, including the first enterprise fiber transaction in Q1 2025. In that time, KBRA has rated 13 issuances totaling approximately $16 billion. While fiber-to-the-premises (FTTP) generally reflects a more standardized residential product and customer base, enterprise fiber is more complex, with multiple service types tailored to distinct business needs.

Spirit Airlines Inc. (Spirit), an ultra-low-cost carrier headquartered in Dania Beach, Florida, ceased operations May 2, 2026, after failing to secure additional funding and rescue financing. The airline has halted all flights and is winding down operations.

KBRA is pleased to announce the assignment of preliminary ratings to 16 classes of WFCM 2026-5C9, a $619.9 million CMBS conduit transaction collateralized by 29 commercial mortgage loans secured by 138 properties. The collateral properties are located throughout 70 MSAs, of which the three largest are Los Angeles (17.3% of pool balance), New York (11.8%), and Washington - NoVA - MD (9.4%). The pool’s three largest property type exposures are retail (22.9%), multifamily (20.3%), and industrial (14.9%). The largest loan in the pool, Mall at Prince George’s (9.4%), is an 890,278 sf, anchored regional mall located in Hyattsville, Maryland, approximately six miles northeast of downtown Washington, DC, and 27 miles southwest of Baltimore. The five largest loans, which also include City Center on 6th (8.3%), 535 & 545 5th Avenue (8.1%), Sunshine Lake MHC Portfolio (7.3%), and Marriott Indianapolis North (6.9%), represent 39.9% of the initial pool balance, while the top 10 loans represent 64.2%.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from CROSS 2026-NQM6 Mortgage Trust, an RMBS transaction issued under the CROSS shelf, where Hildene-CCC Loan Acquisition II, LLC and CrossCountry Capital are the co-sponsors. This $464.7 million transaction is collateralized by a pool of 910 residential mortgages, including a meaningful concentration of collateral that KBRA considers to be “non-prime” (75.5%), with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 80.2% and 19.8% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM; 57.6%) or exempt (41.1%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA is pleased to announce the assignment of preliminary ratings to 12 classes of Benchmark 2026-V22, a $750.2 million CMBS conduit transaction collateralized by 32 commercial mortgage loans secured by 145 properties. The collateral properties are located throughout 44 MSAs, of which the three largest are New York (21.4% of pool balance), Los Angeles (10.3%), and Dallas - Fort Worth (9.5%). The pool’s three largest property type exposures are lodging (25.2%), office (22.2%), and self-storage (15.8%). The largest loan in the pool, Mountain Industrial Portfolio (9.0%), is comprised of 90 industrial properties in 27 states that together comprise 19.2 million sf. The five largest loans, which also include Compass Storage National Portfolio (8.7%), Pinnacle Tower (8.7%), Chateau Marmont (8.7%), and Harris Building (8.5%), represent 43.5% of the initial pool balance, while the top 10 loans represent 68.1%.

KBRA assigns a long-term rating of AA to the Sulphur Springs Independent School District (the District), Texas, Unlimited Tax School Building Bonds, Series 2026 (the 2026 Bonds). In addition, KBRA assigns a AA rating on outstanding parity debt. The Outlook is Stable.

KBRA assigns a long-term rating of AA+ with a Stable Outlook to Wills Point Independent School District, TX Unlimited Tax School Building Bonds Series 2026.

KBRA assigns preliminary ratings to AB Issuer LLC (the Issuer), Series 2026-1 (AB 2026-1), a whole business securitization. AB 2026-1 represents the Issuer’s third securitization following the establishment of the master trust in 2021. In conjunction with the issuance of the Series 2026-1 Notes, KBRA is placing the ratings on the outstanding Series 2021-1 Advance Funding Facility and Series 2021-1, A-2 Notes on Watch Upgrade and anticipates withdrawing the ratings on the Series 2021-1, Class A-1 VFN and Series 2022-1, Class A-1 VFN.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM6 (NRMLT 2026-NQM6), a $490.1 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 primarily originated by NewRez LLC (62.7%). In addition, all loans will be serviced by NewRez LLC.

KBRA assigns preliminary ratings to four classes of notes (the “Notes”) issued by Kapitus Asset Securitization VI LLC, Series 2026-1.

KBRA releases research examining recent performance trends for U.S. credit unions (CU) with over $1 billion in assets, highlighting a meaningful inflection in earnings entering 2026. KBRA believes that 2025 marked a turning point for the CU sector, as margin recovery reestablished core earnings capacity following a period of funding pressure. Improving deposit dynamics, favorable earning-asset repricing, and more balanced loan and deposit growth supported a meaningful rebound in profitability. At the same time, the industry is shifting into a more normalized credit environment as asset quality softens from exceptionally strong post-pandemic levels with pressure concentrated in consumer portfolios. Therefore, elevated credit costs continued to temper overall performance. However, capital levels remain a key source of strength, supporting loss absorption capacity and strategic flexibility. Looking into the second half of 2026, KBRA expects margin performance to remain supportive, though expansion is likely to moderate as asset yields stabilize and funding costs gradually reprice. As a result, sustained earnings performance will increasingly depend on disciplined funding strategies, expense management, and prudent credit risk oversight.

KBRA assigns its BBB rating to RD Michigan Property Owner I LLC’s $14 billion senior secured notes. The Outlook is Stable.

KBRA assigns an A rating to the Class A Notes, a BBB rating to the Class B Notes, a BBB- rating to the Class C Notes, and a BB+ rating to the Class D Notes (together, the “Notes”) issued by Sagard Credit Partners III-U RN (Canada) LP (the Issuer, Borrower, or Partnership). This published rating report summarizes KBRA's analysis of the Notes and KBRA’s ratings address the Issuer’s ability to fulfill its obligations on the ultimate interest payment and ultimate repayment of the Notes’ principal by their legal final maturity.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the April 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) decreased 15 basis points (bps) to 7.6% in April from 7.7% in March, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) declined 8 bps.

KBRA assigns preliminary ratings to eight classes of mortgage-backed notes from Aspire Mortgage Trust 2026-2 (SPIRE 2026-2), a $450.6 million non-prime RMBS transaction. The underlying collateral, comprising 829 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs), which make up 99.3% and 0.7% of the pool, respectively. The loans are classified as Qualified Mortgages – Safe Harbor (APOR) (QM: Safe Harbor (APOR)) (32.2%), Qualified Mortgages – Rebuttable Presumption (APOR) (QM: Rebuttable Presumption (APOR)) (1.7%), Non-Qualified Mortgages (Non-QM) (17.7%), or exempt (48.4%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to origination for non-consumer loan purposes.

KBRA assigns a BBB issuer rating to Universal Insurance Holdings, Inc. (NYSE: UVE) and a BBB preliminary long-term credit rating (LTCR) to UVE’s proposed $100 million fixed-rate senior unsecured notes (Notes) due 2031. The Outlook for both ratings is Stable.

KBRA assigns preliminary ratings to 100 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-6 (SEMT 2026-6), a $740.1 million prime RMBS transaction. The pool is comprised of 588 first-lien, fully amortizing fixed rate mortgages with mostly 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 70.0% and WA original CLTV of 70.0%.

KBRA assigns a long-term rating of AAA to the State of Wisconsin Transportation Revenue Bonds, 2026 Series A and Transportation Revenue Refunding Bonds, 2026 Series 1. KBRA additionally affirms the long-term rating of AAA for the State's outstanding Transportation Revenue Bonds. The rating Outlook is Stable.

KBRA releases its Q1 2026 Middle Market Borrower Surveillance Compendium, providing insights into credit quality across KBRA’s portfolio of rated direct lending transactions.

KBRA assigns a long-term rating of AA+ to the City of El Paso, TX General Obligation Refunding and Improvement Bonds, Series 2026. KBRA additionally affirms the long-term rating of AA+ for the City's outstanding General Obligation Bonds and Combination Tax and Revenue Certificates of Obligations. The rating Outlook is Stable.

KBRA announces the assignment of preliminary ratings to seven classes of CONE 2026-DFW3, a CMBS single-borrower securitization. The collateral for the transaction is a $1.05 billion non-recourse, first-lien mortgage loan. The fixed-rate loan is expected to have a five-year term and require monthly interest-only payments. The loan will be secured by the borrowers’ fee simple interests in two, adjacent purpose-built data center assets and one excess land parcel located in Allen, Texas approximately 30 miles north of the Dallas CBD. In total, the portfolio contains a gross building area (GBA) of approximately 472,099 sf, of which 190,091 sf is raised floor area and provides 76.5 megawatts (MW) of capacity. As of December 2025, the portfolio was 99.8% leased to 35 unique tenants.

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 is pleased to announce the assignment of preliminary ratings to eight classes of VMC 2026-FL6, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months.

KBRA assigns preliminary ratings to 74 classes of mortgage-backed notes from PMT Loan Trust 2026-INV5 (PMTLT 2026-INV5), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-INV5 comprises 1,095 fixed-rate mortgages (FRMs) with an aggregate principal balance of $415.8 million as of the May 1, 2026 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (75.4%) and second homes (24.6%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 73.6%. The weighted average original credit score is 778, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to 68 classes of mortgage pass-through notes from OBX 2026-INV3 Trust, a prime RMBS transaction secured primarily by agency-eligible investment properties (71.3%) and second homes (28.6.0%), collectively, non-owner occupied or “NOO” properties. The underlying collateral consists of 971 30-year fixed-rate mortgages (FRMs) with an aggregate unpaid principal balance (UPB) of approximately $384.1 million as of the April 1, 2026, cut-off date. CrossCountry Mortgage, LLC (CrossCountry) as an originator comprises 19.2% of the pool.

KBRA releases a recap of the annual CLO Conference hosted by the Loan Syndications & Trading Association (LSTA) and DealCatalyst, which took place at the Marriott Marquis Hotel in New York on April 27-28, 2026. While 2025 marked a record year for collateralized loan obligation (CLO) issuance, the tone across panels suggested a more cautious outlook for 2026. Participants pointed to moderating issuance expectations, a more fragile technical backdrop, and growing dispersion in credit performance. At the same time, CLO liabilities have continued to perform relatively well, underscoring the resilience of the structure and the importance of active management. Across discussions, a consistent theme emerged: Performance differentiation—across managers, sectors, and tranches—will likely define the current cycle.

KBRA assigns a preliminary rating to SLAM 2026-1 Limited and SLAM 2026-1 LLC (together, SLAM 2026-1), an aviation ABS transaction. SLAM 2026-1 represents the fifth aviation ABS transaction sponsored by SKY Aero Management Limited and SKY Leasing, LLC (SKY or the Company). The Company is comprised of 47 individuals operating out of five offices with headquarters in Greenwich, Connecticut. As of March 31, 2026, the Company had 105 aircraft under management valued at over $4.8 billion. The Company has reported a profit for the last four fiscal years. Affiliates of SKY will retain the equity position in SLAM 2026-1 at closing, as it has done in its previous securitizations.

KBRA announces the assignment of preliminary ratings to seven classes of BX 2026-PNDA, a CMBS single-borrower securitization. The collateral for the transaction is a $1.043 billion 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. The loan will be secured by the borrower’s fee simple interests in 52 multifamily assets totaling 5,269 units across the San Diego metropolitan area of California. The properties were built between 1959 and 1990 and on average are approximately 50 years old. As of March 2026, the portfolio was 94.1% occupied.

KBRA assigns a preliminary rating to one class of notes issued by RAM 2026-1, LLC (RAM 2026-1), a $156.5 million property tax lien ABS transaction. Proceeds from the Notes will be used to acquire a portfolio of 8,065 property tax lien assets from municipalities within 10 states, including New Jersey (24.1%), Florida (18.3%), and South Carolina (16.4%), with a redemptive value of approximately $89.9 million and a weighted average original lien rate of 8.8%. RAM 2026-1 is a partially pre-funded transaction where the Notes are initially supported by $73.5 million deposited into two prefunding accounts (approximately 47.0% of the initial Note balance) that will be used to purchase tax liens subject to certain eligibility criteria.

KBRA assigns preliminary ratings to 13 classes of notes issued by Pagaya AI Debt Grantor Trust 2026-3 and Pagaya AI Debt Trust 2026-3 (collectively “PAID 2026-3”), an unsecured consumer loan ABS transaction. PAID 2026-3 has initial hard credit enhancement levels of 83.57% for the Class A-1 Notes to 4.12% for the Class F-2 Notes. Credit enhancement is comprised of overcollateralization, subordination (except for the Class F-2 Notes), cash reserve accounts funded at closing, and excess spread.

KBRA assigns preliminary ratings TSC SPV Funding, LLC (the Issuer), Series 2026-1 (TROP 2026-1), Class A-2 and Class M notes, a whole business securitization (WBS). TROP 2026-1 represents the issuer’s second securitization in which Tropical Smoothie Café, LLC (TSC, the Manager, or the Company) contributed substantially all of its revenue-generating assets to the Issuer as collateral for the offered notes. In conjunction with the issuance of the Series 2026-1 Notes, KBRA anticipates affirming the ratings on the Issuer’s outstanding Series 2024-1 Class A-1 VFN, Class A-1-LR and A-2 Notes (the Existing Notes and, together with the Series 2026-1 Notes, the Notes). The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2026-1 Notes.

KBRA assigns preliminary ratings to 8 classes of mortgage pass-through notes from J.P. Morgan Mortgage Trust 2026-LTV1 (JPMMT 2026-LTV1). JPMMT 2026-LTV1 is a prime high LTV RMBS transaction sponsored by JPMorgan Chase Bank, National Association and comprises 382 residential mortgages with an aggregate unpaid principal balance (UPB) of approximately $318.9 million as of the April 1, 2026, cut-off date. The underlying collateral consists primarily of 30-year fixed-rate mortgages (FRMs) and adjustable-rate mortgages (ARMs) and includes both non-agency (96.7%) and agency-eligible (3.3%) loans. JPMMT 2026-LTV1 utilizes a Pro Rata/Sequential Hybrid structure.

KBRA is pleased to announce the assignment of preliminary ratings to 15 classes of Benchmark 2026-B43, a $683.2 million CMBS conduit transaction collateralized by 31 commercial mortgage loans secured by 53 properties. The collateral properties are located throughout 26 MSAs, of which the three largest are New York (20.2% of pool balance), Washington - NoVA - MD (12.1%), and Cleveland (7.9%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: retail (32.1%), office (22.0%), multifamily (14.0%), and industrial (11.5%). The loans have in-trust principal balances ranging from $4.0 million to $67.0 million for the largest loan in the pool, NOVA Retail 2-Pack (9.8%), which is comprised of two, grocery-anchored retail centers located in Northern Virginia that together comprise 840,643 sf. The five largest loans, which also include American Greeting HQ (7.9%), Downtown 33 (6.7%), 360 East 72nd Street Co-Op (6.1%) and Montara Village (6.0%), represent 36.6% of the initial pool balance, while the top 10 loans represent 63.8%.

KBRA is pleased to announce the assignment of preliminary ratings to three classes of FREMF Series 2026-K179 mortgage pass-through certificates and three classes of Freddie-Mac structured pass-through certificates (SPCs), Series K-179. FREMF 2026-K179 is a $1.3 billion CMBS multi-borrower transaction. Freddie Mac will guarantee five classes of certificates issued in the underlying Series 2026-K179 securitization and will deposit the guaranteed underlying certificates into a separate trust that will issue the SPCs.

KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of BBCMS 2026-5C41, a $533.6 million CMBS conduit transaction collateralized by 33 commercial mortgage loans secured by 82 properties. The collateral properties are located throughout 23 MSAs, of which the three largest are New York (27.5%), Austin (6.6%) and Tampa (6.0%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: multifamily (43.7%), self-storage (19.3%), office (10.8%) and lodging (10.6%). The loans have in-trust principal balances ranging from $2.4 million to $53.4 million for the largest loan in the pool, Admiral's Cove (10.0%), which is a 245-unit, Class-A, mid-rise multifamily complex located in Haverstraw, New York. The five largest loans, which also include Prospect Place Apartments (10.0%), The Mirage at San Marcos (6.6%), Compass Storage National Portfolio (6.2%) and Renaissance Center Park (6.0%), represent 38.8% of the initial pool balance, while the top 10 loans represent 63.5%.

KBRA assigns a long-term rating of AA+ to the State of Connecticut: General Obligation Bonds (2026 Series A); General Obligation Refunding Bonds (2026 Series B); and, Taxable General Obligation Bonds (2026 Series A). KBRA additionally affirms the long-term rating of AA+ for the State's outstanding General Obligation Bonds. The rating Outlook is Stable.

KBRA assigns a long-term rating of AA- to the Canutillo Independent School District (the District), Texas, Unlimited Tax School and Building and Refunding Bonds, Series 2026 (the 2026 Bonds). Concurrently, KBRA affirms the AA- rating for the District's outstanding unlimited tax bonds. The Outlook is Stable.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes issued by PRKCM 2026-AFC3 Trust, a $380.9 million non-prime RMBS transaction. The underlying collateral consists of 976 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) representing 96.2% and 3.8% of the pool, respectively. The transaction includes a meaningful concentration of collateral that KBRA considers non-prime. All of the loans were originated by AmWest Funding Corporation, which also currently services the pool.

KBRA assigns preliminary ratings to six classes of notes that will be issued from Mission Lane Credit Card Master Trust ("MLCCMT"), Series 2026-A (“MLANE 2026-A”), a credit card ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 40.60% for the Class A notes to 3.50% 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 three classes of notes issued by Sunrun Prometheus Issuer 2026-1, LLC. The transaction is collateralized by a diversified pool of 38,706 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 $844.4 million.

KBRA assigns a long-term rating of AA with a Stable Outlook to the Jacksonville Aviation Authority Revenue Bonds Series 2026 (AMT).

KBRA assigns preliminary ratings to 13 classes of mortgage-backed notes from OBX 2026-NQM6 Trust, a $849.5 million non-prime RMBS transaction. The underlying collateral, comprising 1,534 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 93.8% and 6.2% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 47.0%) or exempt (49.8%) 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.