KBRA Affirms the Ratings for Alesco Preferred Funding X, Ltd.
1 May 2025 | New York
KBRA affirms the ratings to six classes of notes issued by Alesco Preferred Funding X, Ltd. (“Alesco X”), a cash flow collateralized debt obligation (“CDO”) managed by Hildene Collateral Management Company, LLC (“Hildene”).
Alesco X is a CDO of TruPS securities, surplus notes, and sub debt issued by community and regional banks and their holding companies along with insurance companies and their holding companies. The K-WARF of the portfolio is 446, which is within the BB+ to BBB- category. Alesco X is a static transaction and does not allow for any reinvestments.
The performing portfolio at initial rating consisted of 35 obligors with a total collateral par value of $372.5 million and liabilities of $469.0 million. It now contains 32 obligors with a total performing par value of $358.5 million and liabilities of $458.9 million while $67.1 million of defaults were recognized as of the latest portfolio date.
The Class A Overcollateralization Ratio is now 217.03%, compared to 209.3% at initial rating in 2024, while it has paid down $14.0 million of Class A-1 to a Note Factor of 7.79%, as well as $0.2 million of Class C-1 and Class C-2 deferred interest. Overall, the liabilities dropped by $11.7 million while there was an increase in deferred interest of $2.3 million since last year’s rating analysis. The decrease in the Note balances can be attributed to the underlying asset prepayments. The deal maturity is on 23 Sep 2036. KBRA first rated the transaction on 20 May 2024
Since last year, the K-PD, which adjusts for the asset tenor, decreased from 11.1% to 8.7% while the WAL decreased from 11.6 to 10.6 years.
Kroll Bond Rating Agency’s (KBRA) ratings on Class A1, Class A2A, 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, C1 and C2 Notes considers the ultimate payment of interest and principal by the applicable stated maturity date.
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