Press Release|Structured Credit
View PDF

KBRA Affirms the Ratings for Trapeza CDO III, LLC Class C-1, C-2, and D Notes and Withdraws the Ratings for Class B Notes

29 Sep 2026   |   New York

Contacts

KBRA affirms the ratings on the Class C-1, C-2, and D Notes issued by Trapeza CDO III LLC ("Trapeza III") and withdraws the rating on the Class B Notes following their full repayment. Trapeza III is a cash flow collateralized debt obligation ("CDO") managed by Hildene Collateral Management Company, LLC ("Hildene").

Trapeza III is a CDO of trust preferred securities ("TruPS"), surplus notes, and subordinated debt issued by community and regional banks and their holding companies. The portfolio's K-WARF increased to 497 from 467 since the prior surveillance review and is within the BBB- to BB+ range. Trapeza III is a static transaction and does not permit reinvestments.

The portfolio at initial rating consisted of 14 assets from 13 obligors with a total collateral par value of $84.4 million and liabilities of $103.1 million. It now contains 13 assets from 12 obligors with a total performing par value of $75.4 million and liabilities of approximately $96.1 million, while five defaulted/deferring positions totaling $33.4 million were identified as of the latest portfolio date.

Total liabilities decreased by $7.9 million over the prior surveillance period, including the full repayment of Class B. Deferred interest decreased by $1.2 million. K-PD decreased to 7.0% from 7.6%, while portfolio WAL decreased to 6.9 years from 7.9 years.

KBRA first rated the transaction using portfolio data as of August 30, 2024 and it closed on June 25, 2003. The deal maturity is on January 20, 2034.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1017293