KBRA Affirms the Ratings for Trapeza CDO XIII, Ltd.
8 Oct 2025 | New York
KBRA affirms the rating to eight classes of notes issued by Trapeza CDO XIII, Ltd and Trapeza CDO XIII, Inc. (“Trapeza XIII”), a cash flow collateralized debt obligation (“CDO”) managed by Hildene Collateral Management Company, LLC (“Hildene”).
Trapeza XIII is a CDO of TruPS securities, surplus notes, and sub debt issued by community and regional banks, insurance companies and their holding companies. The K-WARF of the portfolio is 747, which is within the BBB- to BB+ category. Trapeza XIII is a static transaction and does not allow for any reinvestments.
The portfolio at initial rating consisted of 35 assets from 34 obligors with a total collateral par value of $427.9 million and liabilities of $503.9 million. It now contains 34 obligors with a total performing par value of $426.6 million and liabilities of $505.0 million while $44.0 million of defaults were recognized as of the latest portfolio date.
Total liabilities increased by a net $1.1 million reflecting $7.8 million in Class E, F and G additional deferred interest, $5.4 million decrease in Class D deferred interest balance in accordance with the Interest Priority of Payments. There is no excess interest after paying Class D deferred interest balance to cure the failing Class E coverage test resulting in the increased Class E, F and G deferred interest balance. Additionally, $1.3 million in asset prepayment proceeds was used to pay down Class A-1 in accordance with the Principal Priority of Payments. The deal maturity is November 9, 2042. Since last year, the K-PD, which adjusts for the asset tenor, remained at 14.4% as the WAL change from 12.9 to 11.9 years.
We first rated the transaction with portfolio date on 1 August 2024 and it closed on 15 August 2007. The deal maturity is on 9 November 2042.
KBRA's ratings on Class A-1, A-2A, A-2B and A-3 Notes represent timely payment of interest and ultimate payment of principal by the applicable stated maturity date. KBRA’s rating on the Class B, C-1, C-2 and D Notes considers the ultimate payment of interest and principal by the applicable stated maturity date.
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