KBRA Affirms the Ratings for Alesco Preferred Funding XI, Ltd.
3 Jun 2025 | New York
KBRA affirms the ratings to six classes of notes issued by Alesco Preferred Funding XI, Ltd. (“Alesco XI”), a cash flow collateralized debt obligation (“CDO”) managed by Hildene Collateral Management Company, LLC (“Hildene”).
Alesco XI is a CDO of TruPS securities, surplus notes, and sub debt issued by community and regional banks and their holding companies along insurance companies and their holding companies. The K-WARF of the portfolio is 337, which is within the BBB to BBB- category. Alesco XI is a static transaction and does not allow for any reinvestments.
The performing portfolio at initial rating consisted of 33 obligors with a total performing collateral par value of $255.9 million and liabilities of $349.0 million. It now contains 31 obligors with a total performing par value of $244.4 million and liabilities of $340.6 million while $34.4 million of defaults were recognized as of the latest portfolio date.
The liabilities dropped by $8.4 million while there was an increase in deferred interest of $3.1 million since last year’s surveillance. The decrease in the Note balances can be attributed to the underlying asset prepayments. The deal maturity is on 23 Dec 2036.
Since last year, the K-PD, which adjusts for the asset tenor, decreased from 9.3% to 7.5% while the WAL decreased from 11.5 to 10.6 years. We first rated the transaction on 23 Aug 2024.
Kroll Bond Rating Agency’s (KBRA) ratings on Class A1A, Class A1B, and Class A2 Notes represent timely payment of interest and ultimate payment of principal by the applicable stated maturity date. KBRA’s rating on the Class B Notes considers the ultimate payment of interest and principal by the applicable stated maturity date.
To access ratings and relevant documents, click here.
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