KBRA Affirms the Ratings for Monroe Capital ABS Funding 2021-1, Ltd.
4 Mar 2025 | New York
KBRA affirms ratings for the Class A-1 Notes, Class A-2 Notes, and Class B Notes issued by Monroe Capital ABS Funding 2021-1, Ltd., a portfolio of recurring revenue loans (“RRLs”) and middle market loans (“MMLs”). Since the transaction closed, the rated notes have received timely distributions of interest payments.
Monroe Capital ABS Funding 2021-1, Ltd. (“MCAF 2021-1”) was a $400.0 million securitization managed by Monroe Capital Management Advisors, LLC (“Monroe” or the “Collateral Manager”), an affiliate of Monroe Capital LLC. The transaction closed in March 2021 and the reinvestment period ended in April 2023. The ratings reflect current credit enhancement levels, excess spread, and structural features.
As of the January 2025 trustee report, the portfolio comprises 196 assets from 42 obligors, the pool balance of the collateral obligations is $319.6 million and there is an excess concentration balance of $20.1 million, bringing the adjusted pool balance to $299.5 million. The transaction is in compliance with the borrowing base condition and all portfolio tests except for the largest obligor, five largest obligors, and ten largest obligors concentration limitations. The current portfolio K-WARF is 3700, which represents a weighted average portfolio credit assessment of around B-/CCC+.
KBRA’s ratings on the Class A-1 Notes, Class A-2 Notes, and Class B Notes consider timely payment of interest and ultimate payment of principal by the applicable stated maturity date.
To access ratings and relevant documents, click here.
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