Press Release|Structured Credit

KBRA Affirms the Ratings for TruPS Financials Note Securitization 2020-1

8 Aug 2024   |   New York

Contacts

KBRA affirms the ratings for three classes of notes of TruPS Financials Note Securitization 2020-1 Ltd (TFINS 2020-1).

TFINS 2020-1 is a static cash flow CDO and will not allow for any reinvestments in the portfolio. The collateral consists of trust preferred securities (TruPS) issued by community and regional banks and their holding companies, along with TruPS, surplus notes, and a bond backed certificate issued by insurance companies and their holding companies.

The initial portfolio at closing consisted of 72 assets from 69 obligors with a total collateral par value of $282.9 million and rated liabilities of $212.2 million. It now contains 56 obligors with a total performing par value of $237.0 and rated liabilities of $167.1 million. The non defaulted asset balance has fallen by $12.475 million and liabilities prepaid by $11.575 million since last year’s surveillance, with the difference being due to $900 million of defaults were recognized in the past year. The decrease in the Note balances can be attributed to the underlying asset prepayments. The deal maturity is on 15 Apr 2040. Since last year, the K-PD, which adjusts for the asset tenor, increased from 9.1% to 10.8% while the WAL decreased from 8.4 to 7.5 years

The surveillance used information from the July 2024 trustee report through the July 2024 payment date. All rated notes have received timely interest payments since the transaction closed.

To access rating and relevant documents, click here.

Click here to view the report.

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Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1005440

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