KBRA Affirms the Ratings for Monroe Capital ABS Funding II, LP
11 Jul 2025 | New York
KBRA affirms ratings for the Class A-L-R Loans, Class A-1-R Notes, Class A-2-R Notes ("Class A Debt"), Class B-1-R Notes, Class B-2-R Notes (Class B Notes"), and Class C-R Notes issued by Monroe Capital ABS Funding II, LP, a securitization backed by a portfolio of recurring revenue loans (“RRLs”) and middle market loans (“MMLs”). Since the transaction closed, the rated Debt has received timely distributions of interest payments.
Monroe Capital ABS Funding II, LP (“MCAF II”) is a $528.4 million securitization managed by Monroe Capital Management Advisors, LLC (“Monroe” or the “Collateral Manager”), an affiliate of Monroe Capital LLC. The transaction closed in February 2023 and reset in July 2024. The reinvestment period ends in April 2026. The ratings reflect current credit enhancement levels, excess spread, and structural features.
As of the April 2025 manger and trustee reports, the portfolio comprises 82 assets from 68 obligors, the pool balance of the collateral obligations is $515.3 million and there is a cash balance of $14.7 million, bringing the adjusted pool balance to $530.1 million. The transaction is in compliance with the borrowing base condition and all portfolio tests. The current portfolio K-WARF is 3355, which represents a weighted average portfolio credit assessment of B-.
KBRA’s ratings on the Class A Debt and Class B Notes consider timely payment of interest and ultimate payment of principal by the applicable stated maturity date. The Class C-R Notes consider ultimate payment of interest and principal by the applicable stated maturity date. Since the transaction closed, the rated notes have received timely distributions of interest payments.
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