KBRA Downgrades Ratings for HOA Funding, LLC Series 2021-1
6 Mar 2025 | New York
KBRA downgrades its ratings on the Class A-2 Notes and the Class B Notes issued by HOA Funding, LLC (the Master Issuer), a whole business securitization (WBS). The rating on the Class A-2 Notes has been downgraded from BB- (sf) to CCC (sf). The rating on the Class B Notes has been downgraded from B (sf) to CCC- (sf). The continued decline of cash flows lowered the amount of available funds for continued debt service, necessitating a withdrawal and depletion of the reserve accounts for note interest payments due on the February 2025 payment date. The data used for this review is as of the December 2024 reporting period (February 2025 payment date). To date, the securities have received timely interest payments. However, owing to the depletion of the interest reserve accounts, the rated notes are at an increased risk of interest payment interruption in future periods.
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