Press Release|Structured Credit
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KBRA Affirms the Ratings for Monroe Capital ABS Funding II, LP

9 Jul 2026   |   New York

Contacts

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 ("MCAF II"), 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.

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 ended in April 2026.

As of the April 8, 2026 trustee report, the portfolio comprises 72 obligors, the pool balance of the collateral obligations is $530.2 million and there is a principal proceeds balance of $1.0 million, bringing the adjusted pool balance to $531.2 million. There are no defaulted, credit risk, or delinquent obligations in the portfolio. The transaction is in compliance with the borrowing base condition and all portfolio tests. The current K-WARF is 3321, 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

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015933