KBRA Upgrades the Ratings for Golub Capital Partners ABS Funding 2020-1 L.P.
10 Oct 2024 | New York
KBRA upgrades the ratings on Class A-1 Notes, Class A-2 Notes, and Class B Notes issued by Golub Capital Partners ABS Funding 2020-1 L.P., a $283.5 million securitization managed by GC Investment Management LLC (“GCIM” or the “Collateral Manager”). The transaction closed in November 2020 and reinvestment period ended in November 2022.
The securitization consists of $12.7 million of Class A-1 floating-rate notes, $112.1 Class A-2 fixed-rate notes, $16.9 million of Class B fixed-rate notes (collectively the “Notes”), and $141.8 million subordinated notes (collectively the “Subordinated Notes”), which receive payments from a portfolio of middle market loans (“MMLs”) and recurring revenue loans (“RRLs”). The current Advance Rate is 62.5% for the Class A Notes and 71% for the Class B Notes in aggregate.
As of the July 2024 trustee report, the portfolio comprises 34 assets from 27 obligors, the pool balance of the collateral obligations is $245.3 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. Since KBRA's last review of the transaction in October 2023, the Class A Par Subordination has increased to 49.2% from 39.8% and the Class B Par Subordination has increased to 42.2% from 31.7%. The current portfolio K-WARF is 3557, which represents a weighted average portfolio credit assessment of B-.
The transaction exited its reinvestment period in November 2022 and has been amortizing sequentially since then. As a result, credit enhancement for the Class A-1, Class A-2, and Class B Notes has improved significantly.
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