KBRA Places Kobalt Music Assets LP, Series 2024-1 on Watch Downgrade
3 Mar 2026 | New York
KBRA has placed the rating on the Class A-2 Notes of Kobalt Music Assets LP (the Issuer), a music royalty ABS transaction, on Watch Downgrade owing to the continued underperformance of the assets. The Class A-2 Notes are the sole class of notes by the Issuer.
The transaction’s underperformance to date is primarily attributable to several unseasoned assets exhibiting cash flow declines that were more pronounced than originally forecast. The transaction includes DSCR-based triggers, with cash trap triggers at 1.30x (50%) and 1.20x (100%), and a rapid amortization trigger at 1.10x. As of the January 2026 payment date, the debt service coverage ratio (DSCR) is 1.33x.
Kobalt Music Assets LP is securitized by royalties from a music catalog comprising more than 5,000 works by artists and songwriters, including AJR, YoungBoy Never Broke Again, Busta Rhymes, and Jessie J, which represent some of the largest contributors to the catalog by net publisher share.
KBRA expects to receive an updated valuation in the coming weeks and will continue to monitor the performance of the transaction and will seek to resolve or update the Watch Placement within 90 days.
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