Articles from Kroll Bond Rating Agency, LLC

KBRA assigns preliminary ratings to 58 classes of mortgage-backed certificates from EFMT 2026-AE2. EFMT 2026-AE2 is a $349.0 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 (69.9%) and second homes (30.1%) underwritten to agency guidelines. The underlying pool is seasoned approximately three months and comprises 937 loans. All loans are originated and serviced by PennyMac Loan Services, LLC.

KBRA releases a report examining the stability and transition patterns of our ratings over a 1-year, 3-year, 5-year, and lifetime period between 2011 and 2025. The ratings universe used in this study includes both published and unpublished long-term credit ratings (LTCR) assigned across all geographical regions.

KBRA assigns preliminary ratings to six classes of notes issued by Post Road Equipment Finance 2026-1, LLC (PREF 2026-1), an equipment ABS transaction.

KBRA assigns preliminary ratings to two classes of notes issued by ClearLight Nebo Issuer 2026-1, LLC. The transaction is collateralized by a diversified pool of 15,555 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 $386.1 million.

KBRA assigns issuer ratings of BBB to Ripple Prime CIV US BD HoldCo LLC, the intermediate holding company, and Hidden Road Partners CIV US LLC (“Ripple Prime US” or “the firm”), its primary operating subsidiary. The firm is an SEC-registered broker-dealer, CFTC-registered futures commission merchant (FCM), a member of FINRA and SIPC, a clearing member of CME Group exchanges, and a member of the FICC Government Securities Division.

KBRA releases the February 2026 issue of CMBS Trend Watch.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the March 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS increased to 7.7% in March from 7.5% in February, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) was steady at 10.3%.

KBRA is pleased to announce its ratings are now available on FactSet, a leading global financial data and analytics platform serving investment professionals worldwide.

KBRA is pleased to announce the assignment of preliminary ratings to four classes of BX 2026-PURE4, a Canadian CMBS single-borrower securitization. The collateral for the transaction is a CAD 473.4 million floating-rate, interest-only mortgage loan secured by the borrowers’ fee simple interests in eight industrial assets totaling 1.9 million sf, located in the Canadian province of Ontario. As of February 2026, the portfolio was 97.4% leased to 38 tenants. The loan is expected to have an initial two-year term with three, one-year extension options and requires monthly payments.

KBRA releases research The U.S. private-label CMBS loan distress rate entered double-digit territory in January 2026. However, although the distress rate, which includes both loans 30+ days delinquent and those that are current but specially serviced, continues to rise, the pace of increase has moderated. From January 2024 to January 2025, the distress rate climbed 250 basis points (bps) to 9.7% from 7.2%. In the following 12 months, the rate increased only 70 bps to 10.4% as of January 2026.

KBRA releases a research report that examines the structural differences between solar loan and lease collateral, compares securitized credit performance, and analyzes the drivers of divergence. The residential solar ABS sector has experienced a meaningful bifurcation in performance between loan-backed and lease-backed transactions. While both structures are exposed to consumer credit and energy market dynamics, solar loan ABS transactions have experienced weakening credit performance, whereas solar lease ABS transactions have remained broadly stable.

KBRA releases research that explores the credit implications of artificial intelligence (AI) in ABS venture debt, highlighting both emerging risks and the extent to which they remain contained.

KBRA assigns preliminary ratings to three classes of notes issued by GoodLeap Home Improvement Solutions Trust 2026-1 (“GDLP 2026-1”), a $408.903 million asset-backed securitization collateralized by a pool of residential home improvement loans originated by GoodLeap, LLC ("GoodLeap" or the "Company"). The preliminary ratings reflect the initial credit enhancement levels ranging from 21.89% for the Class A notes to 5.74% for the Class C notes as a percentage of 95% of the pool balance.

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

KBRA releases research examining the U.S. REIT sector, which has entered a period of accelerated consolidation, with public-to-public mergers, take-privates, and strategic acquisitions gaining momentum. Nareit estimates that announced deal value for listed REIT acquisitions reached approximately $24 billion in 2025, nearly double 2024 levels, with activity accelerating in the second half and continuing into early 2026. In KBRA’s view, the recent wave reflects a structural response to valuation dislocations, rising scale requirements, and a more supportive capital-markets backdrop.

KBRA assigns a preliminary rating to one class of notes issued by FNA 9, LLC (FNA 9), a $270.0 million property tax lien ABS transaction. FNA 9 represents the Company’s seventh public tax lien ABS securitization. Proceeds from the Notes will be used to acquire a portfolio of 9,249 property tax lien assets from municipalities within 13 states, including Texas (53.2%), Florida (19.9%), and New Jersey (8.4%), with a redemptive value of approximately $157.0 million (the Initial Tax Liens) and a weighted average original lien rate of 8.3%.

KBRA releases research examining the impact of artificial intelligence (AI) on software and private credit portfolios.

KBRA assigns a long-term rating of AAA to the Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Bonds, Refunding Series 2026A (Green Bonds). KBRA additionally affirms the long-term rating of AAA for outstanding Sales Tax Revenue Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to 72 classes of mortgage-backed notes from PMT Loan Trust 2026-INV4 (PMTLT 2026-INV4), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-INV4 comprises 1,093 fixed-rate mortgages (FRMs) with an aggregate principal balance of $412.3 million as of the April 1, 2026 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (77.9%) and second homes (22.1%). 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 777, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to 14 classes of mortgage-backed notes from OBX 2026-NQM5 Trust, a $876.5 million non-prime RMBS transaction. The underlying collateral, comprising 1,688 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 94.0% and 6.0% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 40.8%) or exempt (46.6%) 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 senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to Lake City, Florida-based First Federal Bancorp, Inc. ("First Federal" 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, First Federal Bank. The Outlook for all long-term ratings is Stable.

KBRA announces the assignment of preliminary ratings to three classes of BX 2026-ALOHA, a CMBS single-borrower securitization. The collateral for the transaction is a $1.24 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 36 properties and by the borrower’s pledge of equity in the owner of the leasehold interest for one property, which collectively encompass a total of 3.8 million sf. The portfolio is comprised of 20 retail assets (75.6% of loan balance), 15 industrial assets (22.3%), and two office assets (2.1%). All 37 portfolio properties are located in Hawaii, dispersed across the islands of O’ahu (72.5% of loan balance), Maui (11.6%), Kauai (8.7%), and Big Island (7.3%). As of March 2026, the portfolio was 92.7% leased to a granular roster of over 670 unique tenants.

KBRA assigns preliminary ratings to six classes of notes issued by First Investors Auto Owner Trust 2026-1 (“FIAOT 2026-1”), an asset-backed securitization collateralized by a pool of auto loans. FIAOT 2026-1 represents the first term ABS securitization in 2026 for Stellantis Financial Services, Inc. d/b/a First Investors Financial Services (“SFS” or the “Company”) and the fifth since the Company's acquisition by Stellantis N.V. in 2021.

KBRA is pleased to announce the assignment of preliminary ratings to nine classes of BSPRT 2026-FL13, 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 ten classes of mortgage pass-through certificates from CROSS 2026-NQM4 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 $519.8 million transaction is collateralized by a pool of 904 residential mortgages, including a meaningful concentration of collateral that KBRA considers to be “non-prime” (78.3%), with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 76.0% and 24.0% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM; 59.6%) or exempt (39.9%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA assigns a long-term rating of AA to the State of Louisiana General Obligation Bonds, Series 2026-A and affirms the long-term rating of AA for the State's outstanding General Obligation Bonds. The rating Outlook is Stable.

KBRA releases research examining the credit implications of the ongoing Middle East conflict across corporate sectors. The disruption has evolved into a multichannel shock affecting production, refining, logistics, and pricing across global energy markets. KBRA views the impact as inherently asymmetric: Input costs and liquidity needs can reset quickly through higher oil and refined product prices, while revenue and pricing adjustments typically lag. KBRA expects the impact to vary significantly and outlines key sectors of focus under different conflict scenarios.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from Deephaven Residential Mortgage Trust 2026-INV2 (DRMT 2026-INV2). The DRMT 2026-INV2 mortgage loans are secured by first liens on non-owner occupied (NOO) investor properties. All the loans in the pool are exempt from the ATR/QM rule due to being originated for business purposes. As of the cut-off date, the pool comprises 1,130 primarily fixed-rate (99.4%) residential mortgage loans seasoned approximately two months and is characterized by moderate borrower equity in each mortgaged property, as evidenced by the WA original LTV of 71.2%.

KBRA assigns a long-term rating of AA- to the City of Austin, TX Airport System Revenue and Refunding Bonds, Series 2026A (Non-AMT) and Airport System Revenue and Refunding Bonds, Series 2026B (AMT). KBRA additionally affirms the long-term rating of AA- for the City's outstanding Airport System Revenue Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to 15 classes of notes issued by Pagaya AI Debt Grantor Trust 2026-2 & Pagaya AI Debt Trust 2026-2 (collectively “PAID 2026-2”), an unsecured consumer loan ABS transaction. PAID 2026-2 has initial hard credit enhancement levels of 80.36% for the Class A-1 Notes to 4.03% 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 releases research that explores the potential credit implications of the conflict involving Iran for the airline sector, including both near-term effects and the potential impact of a prolonged disruption. The conflict represents a multichannel shock for airlines, impairing flows through the Strait of Hormuz, disrupting regional refining activity, increasing shipping and insurance costs, and constraining Middle East airspace. The most immediate credit transmission channels for airlines are higher jet fuel costs—driven by crack spread dynamics and localized product dislocations—and operational disruptions, including longer routings, higher fuel burn, and reduced aircraft utilization.

KBRA assigns preliminary ratings to 17 classes of mortgage pass-through certificates from EFMT 2026-NQM4, a $546.8 million non-prime RMBS transaction. The underlying collateral, comprising 1,380 residential mortgages, is characterized by a notable concentration of alternative income documentation, with 88.8% of the loans underwritten using DSCR, bank statements, and asset underwriting documentation types. The majority of loans are either classified as non-qualified mortgages (50.7%) or exempt (48.8%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. The Loan Store Inc is the largest originator of the pool (24.8%), and all loans are serviced by Cornerstone Servicing.

KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of WFCM 2026-C66, an $586.4 million CMBS conduit transaction collateralized by 29 commercial mortgage loans secured by 75 properties. The collateral properties are located throughout 26 MSAs, of which the three largest are New York (13.6% of pool balance), Washington - NoVA - MD (12.6%), and Denver (9.4%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: retail (20.2%), office (19.7%), self-storage (18.5%), and multifamily (13.1%). The loans have in-trust principal balances ranging from $3.7 million to $58.0 million for the largest loan in the pool, NOVA Retail 2-Pack (9.9%), 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 Marriott Anchorage Downtown (9.9%), Sheraton Denver Downtown Hotel (9.4%), 50 West 23rd Street (9.0%) and Domain at Town Centre (6.1%), represent 44.3% of the initial pool balance, while the top 10 loans represent 67.0%.

KBRA assigns a long-term rating of AA+ to the City of New York General Obligation Bonds, Fiscal 2026 Series F and G, and General Obligation Bonds, Fiscal 2026 Series 1. The Outlook is Negative.

KBRA assigns preliminary ratings to 6 classes of mortgage-backed notes from GS Mortgage-Backed Securities Trust 2026-HE1 (GSMBS 2026-HE1), a $301.4 million RMBS transaction sponsored by Goldman Sachs Mortgage Company (Goldman Sachs or GSMC), consisting of first lien (6.6%) and second lien (93.4%) home equity line of credit (HELOC) loans. The underlying pool is seasoned approximately six months and comprises 3,092 loans, with United Wholesale Mortgage, LLC (UWM; 79.5%) as the largest contributing originator. The HELOCs are mostly interest-only (IO) adjustable-rate mortgages (ARMs), with initial draw windows of three (69.9%), five (19.0%) or ten (10.9%) years, and 97.8% of the pool with 10-year IO periods. Most loans feature 10-year or 20-year amortization terms after the IO period, with final maturities primarily of 30 years (69.1%) and 20 years (30.0%). As of the February 28, 2026 cut-off date, the borrowers in the pool have drawn $301.4 million from a combined credit limit of $341.7 million for an aggregate utilization rate of 88.2% for the open HELOC loans.

KBRA assigns a preliminary rating to one class of notes issued by AMCR ABS Trust 2026-A (“AMCR 2026-A”), an unsecured consumer loan ABS transaction. AMCR 2026-A has initial hard credit enhancement of 44.2% for the Class A notes. Credit enhancement is comprised of overcollateralization, subordination (except for the Class D notes), a cash reserve account funded at closing, and excess spread.

KBRA assigns preliminary ratings to 44 classes of mortgage-backed notes from PMT Loan Trust 2026-CNF3 (PMTLT 2026-CNF3), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-CNF3 comprises 589 agency-eligible, conforming mortgage loans with an aggregate stated principal balance of approximately $322.7 million as of the March 1, 2026 cut-off date. The underlying collateral consists of fully amortizing, mostly 30-year fixed-rate mortgages originated under the general QM designation. The pool is characterized by a weighted average (WA) original loan-to-value (LTV) ratio of 75.4%, a WA original combined LTV (CLTV) ratio of 76.2% and a WA original credit score of 765.

KBRA releases research examining loss severities in the single-asset single borrower (SASB) commercial mortgage-backed securities (CMBS) sector. SASB transactions have grown to dominate post-global financial crisis (GFC) issuance, and while loan defaults in the sector have risen sharply since the onset of the pandemic, the sector's overall loss rate remains limited, as nearly three-quarters of SASB loans resolved after default experienced minimal to no loss. When losses occur, they tend to be substantial and can approach severity levels seen in stressed conduit transactions. This dynamic underscores the concentration risk inherent in single-asset structures.

KBRA assigns preliminary ratings to 71 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-INV2 (SEMT 2026-INV2). The transaction consists of 1,118 investment property mortgages with an aggregate principal balance of $438.4 million as of the March 1, 2026 cut-off date. The collateral is characterized by a weighted average (WA) original credit score of 770 and moderate borrower equity, with a WA original LTV and WA original CLTV of 73.2%.

KBRA assigns preliminary ratings to six classes of notes issued by Research-Driven Pagaya Motor Asset Trust 2026-R1 and Research-Driven Pagaya Motor Trust 2026-R1 (collectively “RPM 2026-R1”), an auto loan ABS transaction. RPM 2026-R1 has initial credit enhancement levels of 35.69% for the Class A notes to 2.65% for the Class E-2 notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class E-2 notes), a cash reserve account funded at closing, and excess spread.

KBRA releases research assessing the characteristics of medical professional mortgage (MPM) loans, with a focus on their potential role as a niche collateral segment within the prime private label residential mortgage-backed securities (RMBS) market.

KBRA assigns preliminary ratings to 14 classes of mortgage-backed notes from OBX 2026-NQM4 Trust, a $789.6 million non-prime RMBS transaction. The underlying collateral, comprising 1,476 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 92.3% and 7.7% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 37.0%) or exempt (51.6%) 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 rating of BBB- to MSC Income Fund, Inc.'s (NYSE: MSIF or “the company”) $150 million, 6.34% senior unsecured notes due 2029. The rating Outlook is Stable. The proceeds will be used for repayment of existing secured indebtedness.

KBRA assigns preliminary ratings to 23 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-MED1 (SEMT 2026-MED1). SEMT 2026-MED1 represents the first publicly-rated RMBS backed by loans originated pursuant to Physician or Doctor Loan underwriting programs. These loans, which KBRA generally refers to as Medical Professional Mortgages (MPM), typically originated through specialized prime mortgage programs designed for borrowers in the healthcare field whose earnings potential and income stability are high but where personal debt (typically student loan driven) is high and early career earnings and savings/down payment levels are low. SEMT 2026-MED1 is collateralized by a pool of 607 of such loans, aggregating $482.3 million in UPB, which are predominantly seven-year hybrid adjustable-rate mortgages (ARMs) (96.9% of the pool) with the remaining being fixed-rate mortgages (FRMs). A majority of the loans (95.3%) are designated as QM Safe Harbor (APOR).

KBRA releases research that explores the potential credit implications of the war in Iran, examining both the near-term implications and the potential ramifications of a prolonged conflict. The most immediate risks stem from the disruption to traffic through the Strait of Hormuz, alongside broader operational disruption and security risks in the region. Direct exposure across KBRA-rated transactions is limited, although a prolonged conflict could, over time, weaken macroeconomic conditions and pressure credit fundamentals. KBRA will continue to monitor developments and will take a measured and transparent approach as it assesses potential implications for rated issuers and transactions.

KBRA releases a recap of its Evolving Data Center Landscape: Insights & Implementation Breakfast, where structured finance and project finance professionals gathered in New York on March 12 to discuss key trends and developments shaping the data center market. The breakfast, hosted by KBRA, brought together industry leaders from across the digital infrastructure ecosystem for a series of panels offering distinct perspectives. The program opened with a discussion from a rating agency viewpoint on this dynamic environment, followed by market commentary from the featured speaker, KBRA’s Chief Strategist Van Hesser, and two panels featuring insights from issuers, operators, and investors active in the space.

KBRA releases its updated Investment Fund Debt Global Rating Methodology describing KBRA’s approach to rating debt issued by investment funds or secured by investment fund assets. This methodology supersedes the prior version dated March 12, 2020.

KBRA assigns preliminary ratings to two additional classes of notes from Flexential Issuer, LLC and Flexential Co-Issuer, LLC (together, the Co-Issuers), Series 2026-3 and Series 2026-4, including five classes of notes from Series 2026-1 and Series 2026-2 (together, Series 2026-1/2/3/4).

KBRA assigns preliminary ratings to 102 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-4 (SEMT 2026-4), a $742.1 million prime RMBS transaction. The pool is comprised of 598 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 778 and moderate borrower equity, with a WA original LTV of 69.9% and WA original CLTV of 69.9%.

KBRA assigns a long-term rating of AA to the Alaska Municipal Bond Bank Authority General Obligation Bonds, 2026 Series One (Non-AMT) and affirms the long-term rating of AA for the Authority's outstanding General Obligation Bonds.

KBRA Credit Profile (KCP) attended the CRE Finance Council’s (CREFC) annual High Yield, Distressed Assets, & Servicing Conference, held in New York City on March 10. The event attracted more than 300 commercial real estate (CRE) professionals and featured five panels along with a one-on-one discussion.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from CROSS 2026-NQM3 Mortgage Trust, an RMBS transaction issued under the CROSS shelf that is managed by CrossCountry Capital, LLC (“CCC”). CROSS 2026-NQM3 is a co-sponsored transaction with CCC and APF II RESI O4B, LLC. This $538.3 million transaction is collateralized by a pool of 911 residential mortgages, including a meaningful concentration of collateral that KBRA considers to be “non-prime” (72.6%), with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 78.2% and 21.8% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM; 64.6%) or exempt (34.9%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA releases research examining lease structures in the data center industry. This industry continues to expand rapidly amid increasing demand for artificial intelligence (AI) compute capacity, cloud services, and the proliferation of data-intensive technologies. As the need for financing has also risen, data centers have become an increasingly popular asset type in the securitization market. Total new issuance volume in the space reached $27 billion in 2025 and is expected to continue increasing as the next wave of data centers currently under construction is completed and becomes eligible for takeout financing. Importantly, the vast majority of securitized issuance has been backed by wholesale hyperscale assets.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM4 (NRMLT 2026-NQM4), a $496.3 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 (66.5%). In addition, all loans will be serviced by NewRez LLC.

KBRA is pleased to announce the assignment of preliminary ratings to eight classes of ARCREN 2026-FL1, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months.

KBRA assigns preliminary ratings to Series 2026-1 (Metronet 2026-1, or the Series 2026-1 Notes) from Metronet Infrastructure Issuer, LLC (the Issuer), a communications infrastructure securitization (CIS) that is primarily collateralized by fiber-to-the-premises (FTTP) networks and related contracts.

KBRA assigns preliminary ratings to four classes of notes issued by Upstart Securitization Trust 2026-1 (“UPST 2026-1”), a $292.21 million consumer loan ABS securitization collateralized by unsecured consumer loans and auto secured personal loans. UPST 2026-1 represents the 49th ABS securitization collateralized by loans originated through the online platform operated by Upstart Network, Inc. (“Upstart” or the “Company”), a 100% owned subsidiary of the publicly traded entity Upstart Holdings, Inc. (NASDAQ: UPST).

KBRA assigns preliminary ratings to 21 classes of mortgage-backed notes from RCKT Mortgage Trust 2026-CES3 (RCKT 2026-CES3).

KBRA assigns issuer and senior unsecured debt ratings of A- to Takeoff Merger Sub Inc. (“Merger Sub”), an entity which will merge with Air Lease Corporation (NYSE: AL or “Air Lease”, a global aircraft leasing company based in Los Angeles, California) and be renamed Sumisho Air Lease Corporation (“SALC” or the company). The rating Outlook is Stable.

KBRA releases research examining exposure to the Middle East in its rated universe of aviation ABS transactions.

KBRA assigns a long-term rating of A+ to the Pennsylvania Turnpike Commission Turnpike Subordinate Revenue Refunding Bonds, First Series of 2026 and Turnpike Subordinate Revenue Refunding Bonds, Second Series of 2026. KBRA additionally assigns a long-term rating of AA- to the Commission's Motor License Fund-Enhanced Turnpike Subordinate Special Revenue Refunding Bonds, First Series of 2026. The rating Outlook is Stable.

KBRA assigns a long-term rating of AAA with a Stable Outlook to the Dormitory Authority of the State of New York (DASNY) State Personal Income Tax Revenue Bonds (General Purpose) Series 2026A (Tax-Exempt) and Series 2026B (Federally Taxable). Concurrently, KBRA affirms the AAA rating and Stable Outlook on outstanding State Personal Income Tax Bonds (General Purpose) issued by DASNY and by the New York State Thruway Authority.

KBRA is pleased to announce the assignment of preliminary ratings to two additional classes of Benchmark 2026-V21, a $1.2 billion CMBS conduit transaction collateralized by 41 commercial mortgage loans secured by 73 properties. The collateral properties are located throughout 30 MSAs, of which the three largest are New York (11.3%), Philadelphia (8.0%), and Las Vegas (7.9%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: mixed-use (25.7%), office (20.5%), lodging (19.4%), and multifamily (16.0%). The loans have in-trust principal balances ranging from $2.2 million to $95.0 million for the largest loan in the pool, CityCenter (Aria & Vdara) (7.9%), a portfolio of two full-service hotels and casinos totaling 5,349 keys located on the Las Vegas Strip in Las Vegas, Nevada. The five largest loans, which also include 400 Arcola Road (7.5%), City Foundry STL (6.3%), Energy Centre (5.1%), and HKB Portfolio (5.0%), represent 31.8% of the initial pool balance, while the top 10 loans represent 52.1%.

KBRA assigns preliminary ratings to four classes of notes from Flexential Issuer, LLC and Flexential Co-Issuer, LLC (together, the Co-Issuers), Series 2026-1 and Series 2026-2 (Series 2026-1/2).

KBRA assigns a long-term rating of A+ to the Unlimited Tax General Obligation Bonds (Dedicated Revenues), Series 2026 issued by Community College District Number 508, which does business as the City Colleges of Chicago. Proceeds of the Series 2026 Bonds will fund the construction, acquisition, and equipping of projects in the District's capital improvement plan (CIP); capitalized interest through 2026; the premium for a Bond Insurance Policy; and various costs of issuance. The Outlook is Stable.

KBRA releases research examining the evolution of the catastrophe bond (CAT bond) market. CAT bonds have become an increasingly important component of insurers’ risk and capital management frameworks. While CAT bonds do not eliminate catastrophe risk, they can meaningfully reduce tail risk volatility, support capital adequacy, and enhance earnings stability when appropriately structured and integrated into a broader reinsurance program. As CAT bond issuance continues to grow and diversify, KBRA evaluates their use primarily through the lens of balance sheet resilience, earnings stability, and claims-paying ability. CAT bonds are viewed as a complementary form of risk transfer that can mitigate the severity of extreme loss events and reduce reliance on traditional reinsurance markets, particularly during periods of market dislocation.

KBRA releases research discussing the Trump Administration's mass transit funding pause and the implications for infrastructure investment, including examinations of four major infrastructure projects that are affected.

KBRA assigns preliminary ratings to 57 classes of mortgage-backed notes from PMT Loan Trust 2026-INV3 (PMTLT 2026-INV3), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-INV3 comprises 1,129 fixed-rate mortgages (FRMs) with an aggregate principal balance of $422.8 million as of the March 1, 2026 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (73.5%) and second homes (26.5%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 74.1%. The weighted average original credit score is 777, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to four classes of notes issued by OneMain Direct Auto Receivables Trust 2026-1 (“ODART 2026-1”), an auto loan ABS transaction.

KBRA assigns preliminary ratings to 12 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-HYB1 (SEMT 2026-HYB1), a prime RMBS transaction comprising 476 hybrid adjustable-rate mortgages (ARMs) with an aggregate principal balance of $540.9 million. The top originators of this transaction are Rocket Mortgage, LLC (31.4%) and CrossCountry Mortgage Inc (10.8%)

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from BRAVO Residential Funding Trust 2026-NQM3 (BRAVO 2026-NQM3). The $490.5 million RMBS transaction is collateralized by a pool of 987 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 98.1% and 1.9% of the pool, respectively. A notable portion of the loans are classified as exempt (43.5%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes, with the remaining loans classified as either non-qualified mortgages (Non-QM) (56.5%), safe-harbor QM (9.4%) or rebuttable-presumption (0.9%). KBRA considers the loans in the subject pool to be non-prime due to certain loan or borrower characteristics, which include borrowers with blemished credit history and the use of bank statements and other forms of alternative documentation to document income.

KBRA assigns preliminary ratings to 15 classes of mortgage pass-through certificates from EFMT 2026-NQM3, a $509.6 million non-prime RMBS transaction. The underlying collateral, comprising 1,292 residential mortgages, is characterized by a notable concentration of alternative income documentation, with 81.8% of the loans underwritten using DSCR, bank statements, and asset underwriting documentation types. The majority of loans are either classified as non-qualified mortgages (45.8%) or exempt (46.9%) 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 30.6% of the pool.

KBRA assigns preliminary ratings to three classes of notes (the “Notes”) issued by KCG Securitization II, LLC, Series 2026-1 (“KCG 2026-1” or the “Issuer”).

KBRA releases a recap of its Private Credit: Asset Managers in Focus Webinar held on March 3, 2026. Below is a summary of our key takeaways.

KBRA assigns preliminary ratings to 94 classes of mortgage pass-through certificates from Chase Home Lending Mortgage Trust 2026-CINV1 (CHASE 2026-CINV1), a prime RMBS transaction comprising 713 residential mortgages with an aggregate interest-bearing principal balance of approximately $310.2 million as of the February 1, 2026 cut-off date. The underlying pool consists of loans that are collateralized by investment properties (69.1%) and second homes (30.9%). The pool contains both Agency Eligible (27.4%) and Agency Ineligible (72.6%) loans. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the WA original CLTV of 71.3%. The weighted average original credit score is 781, which is well within the prime mortgage range.