KBRA Releases Updated Structured Credit Global Rating Methodology

KBRA releases an updated methodology for rating structured transactions comprised of portfolios of corporate credits which supersedes the “Structured Credit Global Rating Methodology,” dated November 19th, 2020. There are no changes to any ratings based on the adoption of this updated methodology.

With this update, KBRA’s fundamental approach to rating structured credit transactions remains unchanged. However, components of the methodology, including certain analytical assumptions, have been updated and/or clarified to simplify application across transaction types, provide greater transparency, and improve readability. The main analytical assumptions that have been updated include the K-PAT Tenor and the Threshold Loss calculation.

Click here to view the methodology.