Articles from Kroll Bond Rating Agency, LLC

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.

KBRA is pleased to announce the assignment of preliminary ratings to three classes of FREMF Series 2025-K761 mortgage pass-through certificates and three classes of Freddie-Mac structured pass-through certificates (SPCs), Series K-761. FREMF 2025-K761 is a $1.0 billion CMBS multi-borrower transaction. Freddie Mac will guarantee five classes of certificates issued in the underlying Series 2025-K761 securitization and will deposit the guaranteed underlying certificates into a separate trust that will issue the SPCs.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from CROSS 2025-H7 Mortgage Trust, an RMBS transaction issued under the CROSS shelf, where Hildene in affiliation with CrossCountry Mortgage and CrossCountry Capital sponsored the transaction. The $564.8 million transaction is collateralized by a pool of 1,178 residential mortgages originated by CCM, including a meaningful concentration of collateral that KBRA considers to be “non-prime”, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 83.7% and 16.3% of the pool, respectively.

KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of BBCMS 2025-5C37, a $741.5 million CMBS conduit transaction collateralized by 30 commercial mortgage loans secured by 145 properties. The collateral properties are located throughout 40 MSAs, of which the three largest are New York (23.6% of pool balance), Boston (9.4%), and Detroit (6.7%). The pool has exposure to all major property types, with five types representing more than 10.0% of the pool balance: multifamily (26.1%), lodging (22.6%), retail (17.8%), mixed-use (14.2%), and office (11.0%). The loans have in-trust principal balances ranging from $4.5 million to $74.0 million for the largest loan in the pool, Dunbar Apartments (10.0%), a 537-unit, mid-rise multifamily complex located in the Harlem neighborhood of New York City’s borough of Manhattan. The five largest loans, which also include Vertex HQ (9.4%), Mendlowits NYC Collection (8.4%), The Daxton Hotel (6.7%), and Springfield Town Center (6.2%), represent 40.8% of the initial pool balance, while the top 10 loans represent 60.6%.

KBRA releases an updated report tracking key metrics within recurring revenue loan (RRL) securitizations.

KBRA releases research discussing how policy changes in Washington are transferring greater responsibility for funding certain federal programs to state and local governments. The recently enacted tax and spending law known as the One Big Beautiful Bill Act (OBBBA), along with several separate policy proposals, aims to reduce federal expenditures by tightening program requirements and realigning costs. These changes are likely to create budgetary headwinds for many issuers across the municipal market, potentially necessitating difficult fiscal and policy decisions to absorb additional costs.

KBRA releases research examining President Donald Trump's executive order to potentially ease regulatory barriers that have limited defined contribution (DC) retirement plans’ access to alternative investments—a move that could allow millions of retirement savers to invest in an expansive list of such assets. The order aims to have a democratizing effect, as access to alternatives is already a common and growing feature in the retirement accounts of defined benefit (DB) plan savers (typically government employees and legacy corporate pension beneficiaries). This democratization seems profoundly fair, given that alternative investments have historically outperformed comparable public market options, on average. However, as always, not everyone will experience “average” outperformance, and alternative investments also carry higher fees and relative illiquidity, which may dampen rather than brighten some investors’ retirement dreams.

KBRA releases research evaluating the impact of insurance settlements between international insurers and aviation lessors on the aviation asset-backed securities (ABS) sector.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the August 2025 servicer reporting period. The delinquency rate among KBRA-rated U.S. private label CMBS increased to 7.9% in August from 7.5% in July. However, the total delinquent plus current but specially serviced loan rate (collectively, the distress rate) remained stable at 10.6%. The conduit multifamily delinquency rate increased 178 basis points (bps) month-over-month (MoM) to 7.2%, largely due to the Park West Village loan ($254 million in six KBRA-rated conduits including $66.5 million in rake certificates in BBCMS 2022-C17), which became delinquent.

KBRA releases research discussing recent strength in retail sales performance amid concerns that tariff-related headwinds may weigh on spending later this year.

KBRA assigns a long-term rating of AA to the Joint Revenue Refunding and Improvement Bonds Series 2025A-1 (AMT), Joint Revenue Refunding and Improvement Bonds SeriesA-2 (AMT) and Joint Revenue Refunding and Improvement Bonds Series 2025B (Non-AMT) issued by the Cities of Dallas and Fort Worth, TX ("the Cities") on behalf of Dallas/Fort Worth International Airport ("DFW" or "the Airport"). Concurrently, KBRA affirms the long-term AA rating on outstanding Joint Revenue and Improvement Bonds previously issued by the Cities on behalf of the Airport. The Outlook is Stable.

KBRA releases its latest 12 Things in Credit report, highlighting timely credit market themes drawn from our weekly podcast, 3 Things in Credit, hosted by KBRA’s Chief Strategist, Van Hesser. Among the wide-ranging topics Van discusses in this issue are spreads versus yields, the July jobs shock, and Maersk’s upbeat earnings report.

KBRA assigns preliminary ratings to ten classes of mortgage-backed notes from BRAVO Residential Funding Trust 2025-NQM8 (BRAVO 2025-NQM8). The $565.7 million RMBS transaction is collateralized by a pool of 1,230 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 92.7% and 7.3% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM) (24.2%) or exempt (49.5%) 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 Bain Capital Private Credit's ("BCPC" or "the company") $110 million, 5.92% senior unsecured notes due 2028 and $165 million, 6.25% senior unsecured notes due 2030. The rating Outlook is Stable. The proceeds will be used to repay secured debt.

KBRA assigns a long-term rating of AA- to the Pennsylvania Turnpike Commission: Turnpike Revenue Bonds, Series B-1 of 2025; Turnpike Revenue Bonds, Series B-2 of 2025; Turnpike Revenue Refunding Bonds, Third Series of 2025, Sub-series A; and, Turnpike Revenue Refunding Bonds, Third Series of 2025, Sub-series B. KBRA additionally affirms the long-term ratings of AA- for the Commission's outstanding Turnpike Revenue Bonds, A+ for the Commission's outstanding Turnpike Subordinate Revenue Bonds, and AA- for the Commission's outstanding Motor License Fund-Enhanced Turnpike Subordinate Special Revenue Bonds. The Outlook for each obligation is Stable.

KBRA assigns a rating of AAA to Tortoise Energy Infrastructure Corp.’s ("TYG" or the “Fund”) Senior Notes Series VV and Series WW and an A+ rating to TYG’s Mandatory Redeemable Preferred Shares Series J.

KBRA assigns preliminary ratings to four classes of notes issued by Gracie Point International Funding 2025-1, LLC, Series 2025-1.

On August 19, 2025, Portsmouth, VA-based TowneBank (NASDAQ: TOWN)(KBRA Senior Unsecured Debt rating: A-/Stable Outlook) announced a definitive acquisition agreement with Raleigh, NC-based Dogwood State Bank, (OTC: DSBX, "Dogwood", $2.4 billion assets, $2 billion deposits) in an all-stock deal valued at $476.2 million (or $25.04/share of DSBX common stock, based on TOWN’s 15-day average closing stock price of $35.77 on August 18, 2025), reflective of a price to TBV of 2.1x. The merger is expected to close in 1Q26. The proforma bank will have $22 billion in assets, $16 billion in loans, and $19 billion in deposits including the pending acquisition of Old Point Financial Corporation (expected to close September 1, 2025). This transaction would represent three closed acquisitions within a one-year time frame for TOWN.

KBRA assigns a long-term rating of AA+ to the City of Atlanta, Georgia Airport General Revenue Bonds, Series 2025A (Non-AMT) and Series 2025B (AMT) issued for Hartsfield-Jackson Atlanta International Airport. Concurrently, KBRA affirms the long-term rating of AA+ assigned to outstanding General Airport Revenue Bonds and Passenger Facility Charge (PFC) Subordinate Lien Airport General Revenue Bonds. The Outlook on all debt is Stable.

KBRA assigns a AAA rating to the County of Henrico, VA General Obligation Public Improvement Bonds and assigns a AAA rating to outstanding General Obligation bonds. KBRA also assigns a AA+ rating to the Economic Development Authority of Henrico County, VA Revenue Bonds, Series 2025B and assigns a AA+ rating to outstanding appropriation debt. All ratings with a Stable Outlook.

KBRA assigns preliminary ratings to 11 classes of mortgage pass-through notes from J.P. Morgan Mortgage Trust 2025-7MPR (JPMMT 2025-7MPR). The pool comprises 293 first-lien, fixed rate residential mortgage loans with an aggregate principal balance of $393.4 million as of the cut-off date. The pool includes both non-agency (93.4%) and agency-eligible (6.6%) loans. The weighted average original credit score is 765, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-HE2 Trust. OBX 2025-HE2 Trust is an RMBS transaction issued by Onslow Bay Financial LLC (Onslow Bay) as seller/sponsor consisting of first lien (3.2%) and second lien (96.8%) home equity line of credit (HELOC) loans. The underlying pool is seasoned approximately four months and comprises 1,693 loans, with United Wholesale Mortgage, LLC (UWM; 78.9%) and Better Mortgage Corporation (Better Mortgage; 11.9%) as the largest contributing originators. The HELOCs are interest-only (IO) adjustable-rate mortgages (ARMs), with initial draw windows of three (94.8%), five (5.0%) or ten (0.3%) years and IO terms of ten years. After the IO period, most loans feature 20-year (85.3%) or 10-year (14.7%) amortization terms. As of the August 1, 2025 cut-off date, the borrowers in the pool have drawn $216.3 million from a combined credit limit of $255.1 million for an aggregate utilization rate of 84.8%.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from OBX 2025-NQM15 Trust, a $697.3 million non-prime RMBS transaction. The underlying collateral, comprising 1,213 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 91.8% and 8.2% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 50.6%) or exempt (38.8%) 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 assigns a AA long-term rating with a Stable Outlook to the Anaheim Housing and Public Improvements Authority's ("AHPIA") Revenue Bonds, Series 2025-A (Electric Utility Distribution System Improvements) and the Revenue Refunding Bonds, Series 2025-B (Electric Utility Distribution System Refunding), collectively the "Bonds". The Bonds are being issued by AHPIA on behalf of the City of Anaheim's (the "City") electric distribution system (the "Electric System") to pay for a portion of capital expenditures (via the Series 2025-A bond proceeds); and economically refund outstanding parity debt obligations (Series 2025-B bond proceeds).

KBRA assigns a AAA long-term rating to the City of Indianapolis, Indiana, General Obligation Bonds Series 2022A and Series 2022B (taxable) issued through the Indianapolis Local Public Improvement Bond Bank. The Outlook is Stable.

KBRA releases research on the current trends in CMBS servicer advances, appraisal reductions, and nonrecoverable advances. The report examines some of the servicer advancing (SA), appraisal reduction amounts (ARA), and nonrecoverable advance (NRA) trends over the past three years through June 2025, which can provide a window into next year’s trends.

KBRA releases its second-quarter 2025 U.S. Bank Compendium, providing the latest view of the U.S. banking industry and analysis of 2Q25 results for publicly traded U.S. banks with KBRA ratings.

KBRA assigns ratings of ‘BBB (sf)’ to the Series 2025-GT1 Term Notes from PNMAC GMSR ISSUER TRUST, PennyMac Loan Services, LLC’s (PLS) master trust issuer of notes backed by participation certificates evidencing participation interest in mortgage servicing rights (MSR) on loans underlying Ginnie Mae guaranteed mortgage backed securities. KBRA’s rating on the notes is primarily dependent upon the rating of Private National Mortgage Acceptance Company, LLC (PNMAC), as repurchase guarantor.

KBRA announces the assignment of preliminary ratings to seven classes of MHP 2025-MHIL2, a CMBS single-borrower securitization. The collateral for the transaction is a $425.0 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. The loan will be secured by the borrowers’ fee simple interests in 78 self-storage assets encompassing 4.7 million sf located across 20 states, the five largest of which are California (32.4% of loan balance), Texas (13.5%), Florida (9.9%), Missouri (7.6%), and Colorado (7.0%). As of June 2025, the portfolio was 88.9% leased.

KBRA downgrades the long-term rating to AA-, from AA, for the Pennsylvania Turnpike Commission's outstanding Oil Franchise Tax Senior Revenue Bonds and assigns a long-term rating of AA- to the Commission's Oil Franchise Tax Senior Revenue Bonds, Series A of 2025.

KBRA assigns preliminary ratings to two classes of notes issued by Service Experts Issuer 2025-1 (“SE 2025-1”), a $238.6 million consumer lease ABS transaction. The preliminary ratings reflect initial credit enhancement level of 23.39% for the Class A notes, and 18.03% and for the Class B notes. Credit enhancement consists of overcollateralization, excess spread, a cash reserve account and subordination (except for the Class B notes).

KBRA assigns a rating of BBB to HPS Corporate Capital Solution Fund's ("HCAP" or "the company") $150 million 5.860% senior unsecured notes due August 13, 2028 and $200 million 6.200% senior unsecured notes due August 13, 2030. The rating Outlook is Stable. The proceeds will be used for to repay indebtedness, to make investments in accordance with HCAP's investment strategy and policies and for general corporate purposes.

KBRA assigns preliminary ratings to eight classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2025-9 (AOMT 2025-9), a $288.7 million non-prime RMBS transaction. The underlying collateral, comprised of 567 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. All the loans are either classified as non-qualified mortgages (52.6%) or exempt (47.4%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Angel Oak Mortgage Solutions originated 60.1% of the pool, with no other originator comprising over 10% of the collateral.

KBRA assigns a long-term rating of AA+ to the San Francisco Bay Area Rapid Transit District's (the "District") Sales Tax Revenue Bonds 2025 Refunding Series A. Additionally, KBRA affirms the long-term rating of AA+ and AA for the District's outstanding Senior Lien Sales Tax Revenue Bonds and Junior Lien Sales Tax Obligations (TIFIA loan), respectively. The rating Outlook is Stable.

KBRA assigns preliminary ratings to 59 classes of mortgage-backed notes from GCAT 2025-INV3 Trust. The GCAT 2025-INV3 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 974, 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 75.0%. The weighted average original credit score is 776, which is within the prime mortgage range.

KBRA assigns preliminary ratings to notes issued by BasePoint MCA Securitization II LLC (the “Issuer”). BasePoint MCA Securitization II LLC will issue three classes of Series 2025-1 Notes totaling $102 million.

KBRA assigns preliminary ratings to three classes of notes (the Series 2025-3/4 Notes) from Centersquare Issuer LLC and Centersquare Co-Issuer LLC Series 2025-3/4 (Series 2025-3/4), a colocation data center ABS transaction. The transaction represents the third ABS issuance issued by Centersquare Issuer LLC and Centersquare Co-Issuer LLC (the Co-Issuers). KBRA’s rating analysis incorporates all prior debt issuance of the Co-Issuers. KBRA anticipates affirming the ratings of the Series 2024-1/2 Notes and Series 2025-1/2 Notes with the issuance of the Series 2025-3/4 Notes.

KBRA assigns preliminary ratings to four classes of notes issued by VFI ABS 2025-1, LLC (VFI 2025-1), an equipment ABS transaction.

KBRA assigns a long-term rating of AAA to the State of Wisconsin General Obligation Bonds of 2025, Series B. KBRA additionally affirms the: long-term rating of AAA for the State's outstanding General Obligation Bonds; the short-term rating of K1+ for the State's General Obligation Commercial Paper (CP) Program and General Obligation Extendible Municipal Commercial Paper (EMCP) Program; and, the long-term rating of AA+ for the State's Master Lease Certificates of Participation. The rating outlook for the long-term ratings remains Stable.

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2025-CES8 (RCKT 2025-CES8).