KBRA Affirms the Ratings for Thoma Bravo Credit Asset Funding ABS, LLC
25 Oct 2024 | New York
KBRA affirms the ratings on the Class A-1, Class A-2 (collectively “Class A”), Class B, and Class C Notes issued by Thoma Bravo Credit Asset Funding ABS, LLC. Since the transaction closed, the rated notes have received timely distributions of interest payments.
TBCAF 2023-1 is a $500.0 million securitization managed by Thoma Bravo Credit Partners II, L.P. (“Thoma Bravo” or the “Collateral Manager”). The transaction closed in November 2023 and is static with no reinvestment period.
As of the August 31, 2024 trustee report, the portfolio comprises 32 obligors, the pool balance of the collateral obligations is $457.0 million and there is a principal proceeds balance of $11.8 million, bringing the adjusted pool balance to $468.8 million. There are no defaulted, credit risk, or delinquent obligations in the portfolio. The transaction is in compliance with the borrowing base condition and all portfolio tests.
The rated notes benefit from internal credit enhancement through subordination, borrowing base, and excess spread. The Class A, Class B and Class C Notes have a 55.0%, 66.5%, and 76.5% advance rate, respectively. KBRA determined a credit assessment for each asset in the initial portfolio. The portfolio is expected to have a K-WARF of 3112, which equates to a weighted average assessment of approximately B-.
The surveillance analysis used information from the trustee report as of August 2024 and the trustee payment reports through the July 2024 payment date. All Notes have received timely interest distributions since the transaction has closed.
KBRA’s ratings on the Class A and Class B considers timely payment of interest and ultimate payment of principal by the applicable stated maturity date. The rating on Class C considers ultimate payment of interest and ultimate payment of principal by the applicable stated maturity date.
In performing the rating review, KBRA utilized its Structured Credit Global Rating Methodology, the Global Structured Finance Counterparty Methodology and the ESG Global Rating Methodology.
The ratings are based on information known to KBRA at the time of this publication.
To access ratings and relevant documents, click here.
Click here to view the report.