In this report, an update to our Q4 analysis, KBRA continues to track and present several key metrics in a dashboard format, sourced from quarterly collateral loan tapes provided by the issuers of KBRA-rated recurring revenue loan (RRL) asset-backed securities (ABS) (see Appendix 1). The Q4 analysis was based on collateral tapes dated through December 2024, while this update incorporates reports dated through March 2025. For more details on scope and metrics definitions, see Appendix 2.
Key Takeaways
- Managers have identified eight borrowers that flipped from annual recurring revenue (ARR) covenants to EBITDA during Q1 2025. Since 2023, KBRA has performed credit assessments on 189 borrowers with RRL covenants. Of these, 40 have successfully converted from ARR to EBITDA-based covenants. For more…