This document describes how Kroll Bond Rating Agency and its affiliates (collectively, KBRA) analyze investment funds and evaluate quantitative and qualitative risks. Investment funds are differentiated by strategy, geography, tenor, and ownership structure. This methodology outlines KBRA’s general approach to assigning a KBRA Fund Rating (KFR) which measures the quality of a fund's underlying portfolio and the ability of the management team to deploy a fund’s investment strategy. The KFR is meant to serve as a forward-looking opinion on maintaining the quality of those factors going forward. This document also describes how KBRA monitors changing risk in these transactions through our surveillance process.
KFRs are not credit ratings and are differentiated from long-term credit and issuer ratings by the usage of a distinct ‘kf’ subscript (e.g. ‘AAAkf’, ‘AAkf’, etc.). A KFR does not provide an indication of return performance measured versus peers, volatility, or…
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KBRA is a global full-service rating agency with a mission to set a standard of excellence and integrity. Established in 2010, KBRA remains dedicated to the restoration of trust in credit ratings by creating new standards for assessing risk and by offering timely and transparent ratings. KBRA provides market participants with an alternative solution by delivering in-depth research across various sectors within the United States and European markets. We strive to provide the investment community with the products and tools needed to make informed investment decisions.