KBRA Assigns Ratings to Alesco Preferred Funding XVI, Ltd.
26 Aug 2024 | New York
KBRA assigns ratings to three classes of notes issued by Alesco Preferred Funding XVI, Ltd. (Alesco XVI), a securitization backed by a portfolio of bank and insurance TruPs CDO assets.
Alesco XVI is a 2007 vintage CDO of bank and insurance holding company Tier 1 and Tier 2 capital, and subordinated debt issued by Derivative Product Companies with Cohen Bros. Financial Management, LLC (“Cohen & Co”) as the initial collateral manager. It had an initial collateral par value of $500.0 million and liabilities of $482.8 million. It is a static cash flow structure and is now managed by Hildene Structured Advisors, LLC (HSA), a relying advisor to Hildene Capital Management, LLC (Hildene).
The securitization consists of $169.9 million Class A Notes, $20.0 million Class B Notes, $85.3 million Class C Notes, $51.0 million Class D Notes, and $26.0 million of Preferred Shares. The ratings reflect current credit enhancement levels, excess spread, and structural features.
The Classes A, B, C, and D Notes have par subs of 37.9%, 30.6%, -0.6%, and -11.0% respectively. The current portfolio has a K-WARF of 413, which represents a weighted average portfolio assessment between BBB- and BB+, and consists of 30 obligors and 32 assets.
Kroll Bond Rating Agency's (KBRA) ratings on Class A and B reflects KBRA’s opinion regarding the likelihood of timely payment of interest and ultimate repayment of principal. While the rating assigned to the Class B reflects KBRA’s opinion regarding the likelihood of ultimate payment of interest and principal. KBRA does not rate the Class C and D Notes.
To access rating and relevant documents, click here.
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