Once considered a niche market, private credit securitizations1 have become a core element of the structured finance (SF) landscape, particularly within the asset-backed securities (ABS) and structured credit (SC) sectors. Since 2022, approximately 20% of all KBRA-rated SF transactions have been privately placed. The share of private placements in ABS and SC reached nearly 30% and 65%, respectively, over the same period. The rise in private credit SF has been driven by increased demand from alternative investment managers—which may seek bespoke structures to align with specific investment objectives—as well as a growing preference among certain SF issuers for greater flexibility, customization, and confidentiality in execution.
This report outlines key factors driving private rating assignments in KBRA’s SF ratings universe. It also highlights the SF asset classes where KBRA has observed the most significant levels of private rating activity and…