Articles from Kroll Bond Rating Agency, LLC

KBRA releases its second-quarter 2026 U.S. Bank Compendium, providing the latest view of the U.S. banking industry and analysis of 2Q26 results for publicly traded U.S. banks with KBRA ratings.

KBRA assigns preliminary ratings to 64 classes of mortgage pass-through notes from OBX 2026-AHC4 Trust, a prime agency-eligible RMBS transaction sponsored by Onslow Bay Financial LLC, that is fully originated and serviced by AmeriHome Mortgage Company, LLC (AmeriHome). This transaction is comprised of 626 residential mortgages with an aggregate unpaid principal balance (UPB) of approximately $342.7 million as of the August 1, 2026 cut-off date. The underlying collateral consists of 30-year fixed-rate qualified mortgages (FRMs).

KBRA is pleased to announce the assignment of preliminary ratings to 34 classes of BANK5 2026-5YR24, a $872.7 million CMBS conduit transaction collateralized by 35 commercial mortgage loans secured by 64 properties. The collateral properties are located throughout 22 MSAs, of which the three largest are New York (11.4% of pool balance), Minneapolis (9.9%), and Washington - NoVA - MD (8.6%). The pool has exposure to all major property types, with three types representing more than 10.0% of the pool balance: retail (24.5%), industrial (14.0%), and mixed-use (12.9%). The loans have in-trust principal balances ranging from $4.6 million to $87.0 million for the largest loan in the pool, Whalers Village (10.0%), a 120,828 sf oceanfront open-air shopping center located along Kaanapali Beach on the west coast of the island of Maui in Lahaina, Hawaii. The five largest loans, which also include Project Embassy (8.6%), FedEx Brooklyn (8.0%), The 511 Building (5.7%) and Summit Mall (4.8%), represent 37.1% of the initial pool balance, while the top 10 loans represent 57.0%.

KBRA assigns preliminary ratings to four classes of notes issued by Hildene TruPS Securitization 5, Ltd. (HITR 5), a securitization backed by a portfolio of bank and insurance TruPs CDO assets.

KBRA Releases the July 2026 issue of CMBS Trend Watch.

KBRA assigns preliminary ratings to 71 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-INV4 (SEMT 2026-INV4). The transaction consists of 1,558 mortgages with an aggregate principal balance of $637.5 million as of the August 1, 2026 cut-off date. The collateral is characterized by a weighted average (WA) original credit score of 767 and moderate borrower equity, with a WA original LTV and WA original CLTV of 70.4%.

KBRA assigns preliminary ratings to seven classes of notes issued by OCCU Auto Receivables Trust 2026-1 (“OCCU 2026-1”), an asset-backed securitization collateralized by a pool of prime auto loans. OCCU 2026-1 will issue seven classes of notes totaling $307.33 million. The preliminary ratings reflect initial credit enhancement of 17.75% for the Class A notes (consisting of Class A-1, Class A-2, Class A-3, and Class A-4), through 6.35% for the Class D notes. Credit enhancement will consist of subordination (except for the Class D notes), overcollateralization, a reserve account and excess spread.

KBRA publishes preliminary ratings to Cologix Canadian Issuer Limited Partnership, Series 2026-1/2. KBRA initially assigned unpublished preliminary ratings of A- (sf), A- (sf), BBB- (sf), and BB- (sf) to the Class A-1-V Notes, Class A-2 Notes, Class B Notes, and Class C Notes on August 7, 2026, and since that time have remained the same. The Series 2026-1/2 Notes represent the third Canadian ABS issuance issued by Cologix Canadian Issuer Limited Partnership. Similar to other master trust transactions, the Issuer can offer subsequent series of notes if certain requirements in the transaction documents are met.

KBRA assigns preliminary ratings to ten classes of mortgage-backed certificates from Aspire Mortgage Trust 2026-5 (SPIRE 2026-5), a $413.8 million non-prime RMBS transaction. The underlying collateral, comprising 742 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs), which make up 99.6% and 0.4% of the pool, respectively. The loans are classified as Qualified Mortgages – Safe Harbor (APOR) (44.1%), Qualified Mortgages – Rebuttable Presumption (APOR) (0.7%), Non-Qualified Mortgages (23.9%), or exempt (31.2%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to origination for non-consumer loan purposes.

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2026-CES8 (RCKT 2026-CES8).

KBRA is pleased to announce the assignment of preliminary ratings to eight classes of FCR 2026-FL1, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 24 months.

KBRA assigns preliminary ratings to 38 classes of mortgage pass-through certificates from Provident Funding Mortgage Trust 2026-4 (PFMT 2026-4).

KBRA is pleased to announce the assignment of preliminary ratings to four classes of HGI Re-REMIC Trust 2026-FRR1. HGI Re-REMIC Trust 2026-FRR1 is a re-securitization of six principal-only (PO) and 13 interest-only (IO) certificates (the collateral securities) from six separate fixed-rate Freddie Mac K-Series multifamily securitizations (the underlying trusts): FREMF 2022-K749, FREMF 2024-K755, FREMF 2023-K751, FREMF 2023-K754, FREMF 2022-K152, and FREMF 2022-KG07. The collateral securities for this re-securitization consist of the most subordinate principal-only class and two or three, as applicable, interest-only certificates from each underlying trust. The re-securitization trust will issue three separate groups totaling 19 certificates and a residual interest, with each group corresponding to two underlying trusts. KBRA provided ratings for the certificates of Group 1 (FREMF 2022-K749 and FREMF 2024-K755).

KBRA is pleased to announce the assignment of preliminary ratings to 22 classes of Benchmark 2026-V23, a $697.8 million CMBS conduit transaction collateralized by 30 commercial mortgage loans secured by 59 properties. The collateral properties are located throughout 19 MSAs, of which the three largest are New York (24.0% of pool balance), North - Central New Jersey (10.0%), and Houston (9.9%). The pool’s three largest property type exposures are industrial (23.9%), lodging (19.9%), and office (17.6%). The largest loan in the pool, Fratelli Beretta Industrial Portfolio (9.9%), is comprised of three adjacent industrial cold storage/warehouse buildings totaling 526,313 sf located in Mount Olive, New Jersey, approximately 50 miles west of Midtown Manhattan. The five largest loans, which also include HP Plaza (9.9%), Old Edwards Portfolio (7.2%), Fairfield Times Square (7.2%), and Holiday Inn Hotel Chelsea (5.9%), represent 40.1% of the initial pool balance, while the top 10 loans represent 64.8%.

KBRA releases research examining the growing role of development programs across the U.S. net lease real estate investment trusts (REIT) sector. Net lease REITs are firmly in growth mode as of midyear 2026, supported by positive trading premiums to net asset value (NAV) that facilitate accretive external growth. Alongside traditional acquisitions, larger net lease REITs have built development pipelines totaling approximately $2.9 billion, up substantially from $845 million at year-end 2021. In KBRA’s view, favorable development economics relative to acquisitions are positioning development as a more durable complement to acquisition-led growth.

KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of BMO 2026-C15, a $722.8 million CMBS conduit transaction collateralized by 51 commercial mortgage loans secured by 98 properties. The collateral properties are located throughout 31 MSAs, of which the three largest are New York (18.2% of pool balance), Phoenix (10.0%), and North – Central New Jersey (8.3%). The pool’s three largest property type exposures are retail (32.3%), self-storage (21.4%), and industrial (15.0%). The largest loan in the pool, Arizona Mills (10.0%), is a 1.2 million sf outlet center located in Tempe, Arizona, approximately 11 miles southeast of the Phoenix CBD. The five largest loans, which also include Orchard at Saddleback (7.7%), U-Haul AREC Portfolio 22 (6.5%), U-Haul - AREC2 Portfolio (6.2%), and Lawrence Logistics Center (4.8%), represent 35.2% of the initial pool balance, while the top 10 loans represent 53.8%.

KBRA assigns preliminary ratings to ten classes of mortgage-backed certificates from Morgan Stanley Residential Mortgage Loan Trust 2026-NEW2 (MSRM 2026-NEW2). MSRM 2026-NEW2 is an RMBS transaction sponsored by Morgan Stanley Mortgage Capital Holdings LLC as seller/sponsor and includes a meaningful concentration of collateral that KBRA considers to be “non-prime.” The $418.1 million RMBS transaction is collateralized by a pool of 670 fixed-rate residential mortgages. All loans are either classified as non-qualified mortgages (Non-QM) (63.1%) or exempt (36.9%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. Nexera Holding LLC d/b/a NewFi Lending is the sole originator and the majority of the pool is serviced by Rocket Mortgage, LLC d/b/a Rushmore Servicing (98.8%).

KBRA assigns preliminary ratings to four classes of notes issued by Aqua Finance Issuer Trust 2026-B (“Aqua 2026-B”), an asset-backed securitization collateralized by marine and recreational vehicle contracts as well as home improvement contracts.

KBRA assigns preliminary ratings to Arby's Funding, LLC, Series 2026-1 Class A-1 and Class A-2 Notes, a whole business securitization (WBS). The rating actions follow KBRA’s analysis which indicates that existing credit enhancement for the notes and cash flows are sufficient to support the ratings following the issuance of the Series 2026- 1.

KBRA announces the assignment of preliminary ratings to six classes of AHPT 2026-ATRM, a CMBS single-borrower securitization. The collateral for the transaction is a $565.7 million floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrowers’ fee simple and leasehold interests in 18 hotels located in 12 states. For the TTM 5/2026 period, the portfolio’s occupancy was 73.4% with an average daily rate (ADR) of $150.18, resulting in revenue per available room (RevPAR) of $110.16. As of TTM 5/2026, the portfolio achieved weighted average occupancy, ADR and RevPAR penetration rates of 118.1%, 111.4% and 131.1%, respectively.

KBRA is pleased to announce the assignment of preliminary ratings to 14 classes of MSBAM 2026-C36, a $700.5 million CMBS conduit transaction collateralized by 31 commercial mortgage loans secured by 57 properties. The collateral properties are located throughout 18 MSAs, of which the three largest are New York (21.7%), Orange County (10.5%), and San Jose (7.1%). The pool’s three largest property type exposures are retail (26.4%), office (23.9%), and multifamily (20.0%). The largest loan in the pool, Pismo Beach & Queenstown Premium Outlets (10.0%),comprised of two outlet centers in California and Maryland that together comprise 437,025 sf of the space. The five largest loans, which also include U-Haul AREC Portfolio 22 (10.0%), 19000 Homestead (7.1%), Orange Center Tower (5.8%), and Arizona Mills (5.0%), represent 37.9% of the initial pool balance, while the top 10 loans represent 59.1%.

KBRA assigns preliminary ratings to five classes of notes issued by GreenSky Home Improvement Issuer Trust 2026-A ("GSKY 2026-A"), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements.

KBRA releases research on recent academic and media commentary regarding the growth of private credit, private equity (PE) ownership of life insurers, the use of private letter ratings (PLR), and the role of state guaranty funds in protecting policyholders. These are legitimate areas for regulatory and market focus. However, the assertion that PE firms categorically use insurers as vehicles for risky private credit origination, excessive fee generation, and unbalanced affiliated investment activity relies on a series of assumptions that extend well beyond the evidence presented. Similarly, the thesis that PE-owned insurers are using private credit to socialize risk through state guaranty funds depends on a chain of inferences that extends well beyond the evidence presented. Private credit exposure is not equivalent to insolvency risk; PLRs are not inherently weaker because they are unpublished; affiliated transactions are not inherently abusive; and guaranty funds are not a standing taxpayer guarantee for private credit losses.

KBRA assigns issuer and senior unsecured debt ratings of BBB to Fortress Private Lending Fund ("FPLF" or "the company"). The rating Outlook is Stable.

KBRA assigns a long-term rating of AA to the City of Jacksonville, Florida Special Revenue and Refunding Bonds, Series 2026A, and Special Revenue Refunding Bonds, Series 2026B. Concurrently, KBRA affirms the AA rating on the City's outstanding Special Revenue Bonds and Special Revenue Bonds (Better Jacksonville Program). The Outlook is Stable.

KBRA assigns preliminary ratings to 13 classes of mortgage-backed notes from OBX 2026-NQM11 Trust, a $896.1 million non-prime RMBS transaction. The underlying collateral, comprising 1,729 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 91.5% and 8.5% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 43.6%) or exempt (45.5%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. There were no originators comprising over 10% of the pool.

KBRA assigns preliminary ratings to seven classes of mortgage pass-through certificates from CROSS 2026-CES1 Mortgage Trust (CROSS 2026-CES1). CROSS 2026-CES1 is backed by closed-end second (CES) lien mortgages, comprising $405.3 million. The underlying pool is seasoned approximately five months and comprises 2,825 loans, with Button Finance, Inc. (Button; 63.3%) and CrossCountry Mortgage (CrossCountry or CCM; 36.7%) as the only contributing originators. The collateral is characterized by fully amortizing, fixed-rate mortgages (FRMs) with 10-year (0.8%), 15-year (2.8%), 20-year (22.4%), 25-year (0.4%) and 30-year (73.5%) terms.

KBRA assigns preliminary ratings to five classes of notes issued by BHG Securitization Trust 2026-2CON (“BHG 2026-2CON”), an asset-backed securitization collateralized by a pool of unsecured consumer loans (“Consumer Loans”).

KBRA assigns preliminary ratings to four classes of notes issued by OneMain Financial Issuance Trust 2026-3 (“OMFIT 2026-3”), an consumer loan ABS transaction.

KBRA assigns preliminary ratings to four classes of notes issued by OneMain Financial Issuance Trust 2026-2 (“OMFIT 2026-2”), an consumer loan ABS transaction.

KBRA assigns preliminary ratings to 44 classes of mortgage-backed notes from PMT Loan Trust 2026-CNF7 (PMTLT 2026-CNF7), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-CNF7 comprises 669 agency-eligible, conforming mortgage loans with an aggregate stated principal balance of approximately $348.2 million as of the August 1, 2026 cut-off date. The underlying collateral consists of fully amortizing, mostly 30-year fixed-rate mortgages originated under the general QM designation. The pool is characterized by a weighted average (WA) original loan-to-value (LTV) of 71.9%, a WA original combined LTV (CLTV) of 72.7% and a WA original credit score of 776.

KBRA assigns preliminary ratings to 58 classes of mortgage-backed certificates from EFMT 2026-AE5. EFMT 2026-AE5 is a $298.1 million RMBS transaction, as of the cut-off date, sponsored by EFMT Sponsor LLC. The pool is secured entirely of first lien, non-owner occupied (NOO) investor properties (61.8%) and second homes (38.2%) underwritten to agency guidelines. The underlying pool is seasoned approximately three months and comprises 870 loans. Majority of loans are originated and serviced by PennyMac Loan Services, LLC.

KBRA assigns preliminary ratings to eight classes of notes issued by Westlake Automobile Receivables Trust 2026-3 (“WLAKE 2026-3”), an asset-backed securitization collateralized by a pool of auto loans.

KBRA assigns preliminary ratings to three classes of notes issued by Lendbuzz Nonprime Finance Securitization Trust 2026-1 (“LBZZ 2026-NF1”), an auto loan ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 28.50% for the Class A notes to 10.00% for the Class C notes. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account funded at closing, and excess spread.

KBRA assigns preliminary ratings to 10 classes of notes issued by Pagaya AI Debt Grantor Trust 2026-R3 and Pagaya AI Debt Trust 2026-R3, collectively “PAID 2026-R3,” an unsecured consumer loan ABS transaction. PAID 2026-R3 has initial hard credit enhancement levels ranging from 63.60% for the Class A Notes to 8.45% for the Class F Notes. Credit enhancement is comprised of overcollateralization, subordination, except for the Class F Notes, cash reserve accounts funded at closing, and excess spread.

KBRA assigns a long-term rating of A+ to the Reno-Tahoe Airport Authority Airport Revenue Bonds, Series 2026A (AMT) and Airport Revenue Bonds, Series 2026B (Non-AMT). KBRA additionally affirms the long-term rating of A+ for the Authority's outstanding Airport Revenue Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to 10 classes of mortgage pass-through certificates from ADMT 2026-NQM6, a $411.3 million non-prime RMBS transaction sponsored by Atlas A&D Opportunity Fund III LP, with all of the loans being originated by A&D Mortgage, LLC or one of its qualified correspondents. The underlying collateral, comprising 1,043 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. Borrowers in the subject pool possess a non-zero WA original credit score of 749 and exhibit notable equity in each mortgaged property, with a WA combined LTV (CLTV) ratio of 69.3%. Notably, 3.3% of the loans are second-lien loans.

KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of BMO 2026-5C16, a $773.5 million CMBS conduit transaction collateralized by 25 commercial mortgage loans secured by 129 properties. The collateral properties are located throughout 44 MSAs, of which the three largest are New York (28.3%), Philadelphia (10.5%), and Miami (6.9%). The pool’s three largest property type exposures are office (20.7%), retail (19.8%), and industrial (18.4%). The largest loan in the pool, Cannon Industrial Portfolio (10.0%), is comprised of six warehouse properties and one flex industrial property located in three states that together comprise 2.6 million sf of space. The five largest loans, which also include Queens Atrium (10.0%), Deptford Mall (9.2%), Doral Center (6.9%), and Shore Front Parkway Apartments (5.6%), represent 41.7% of the initial pool balance, while the top 10 loans represent 66.0%.

KBRA announces the assignment of preliminary ratings to seven classes of BLOX 2026-BLOX, a CMBS single-borrower securitization.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes issued by PRKCM 2026-AFC5 Trust, a $412.2 million non-prime RMBS transaction. The underlying collateral consists of 1,086 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) representing 98.8% and 1.2% of the pool, respectively. The transaction includes a meaningful concentration of collateral that KBRA considers non-prime. All of the loans were originated by AmWest Funding Corporation, which also currently services the pool.

KBRA assigns preliminary ratings to the Class A Notes, Class B Notes, Class C Notes, and Class D Notes issued by HALO AirFinance 2026-1 Designated Activity Company and HALO AirFinance 2026-1 LLC (together, HALO 2026-1), an aviation loan ABS transaction.

KBRA assigns preliminary ratings to five classes of notes issued by RKTL 2026-3 an asset-backed securitization collateralized by unsecured consumer loans. This transaction represents RockLoans Marketplace LLC (“Rocket Loans”, or the “Company”) fifth 144A unsecured consumer loan ABS securitization.

KBRA announces the assignment of a preliminary rating to one class of BX 2026-LBTY, a CMBS single-borrower securitization. The collateral for the transaction is a $1.036 billion floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrower’s fee simple interests in 15 multifamily assets. In total, the portfolio contains 6,041 units and the properties are located across seven states, the five largest of which are Florida (25.8%), Texas (24.6%), Georgia (21.0%), Arizona (14.9%), and Tennessee (6.6%). The complexes, which range in size from 150 to 1,675 units, were built between 2001 and 2019 and on average are approximately 15 years old. As of July 2026, the portfolio was 94.1% leased.

On August 1, 2026, FinBe Inc. (“FinBe” or the “Company”), the sponsor and servicer of FinBe USA Trust 2025-1 (“FinBe 2025-1”), an auto loan ABS transaction rated by KBRA, entered into a subservicing agreement with Westlake Portfolio Management (“WPM”). FinBe will continue to be the named servicer for the transaction and WPM will be performing servicing duties.

KBRA releases research examining how the recent Serta ruling raises the legal and economic risks of exclusionary liability management exercises, particularly in the private credit market.

KBRA releases research on the report published by the President’s Federal Emergency Management Agency (FEMA) Review Council. The report recommends shifting FEMA toward a more supportive federal role, with state, local, tribal, and territorial governments taking greater responsibility for disaster management. It proposes stricter disaster-declaration criteria, faster direct funding, simplified survivor aid, restructured mitigation grants, National Flood Insurance Program (NFIP) reform, and lower administrative costs. If implemented, these recommendations would aim to speed assistance and reduce bureaucracy but could increase fiscal risk for state and local governments. While the Review Council report addresses states, localities, tribal and territorial governments, this commentary discusses several of the report’s recommendations with a focus on the impact on states and localities, as well as recommendations for the NFIP.

KBRA assigns a long-term rating of AA+ to the City of New York General Obligation Bonds, Fiscal 2027 Series A. The Outlook is Stable.

KBRA is pleased to announce the assignment of preliminary ratings to eight classes of OAKRE 2026-FL1, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the July 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS increased 29 basis points (bps) to 7.8% in July from 7.5% in June, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) climbed 18 bps.

KBRA assigns a BBB+ long term credit rating to Knighthead Annuity & Life Assurance Company’s 8.50% fixed rated USD 75 million Series B Prescribed Capital Notes (Notes) due December 15, 2046. The Outlook for the rating is Stable. On July 6, 2026, KBRA assigned a BBB+ preliminary long term credit rating for these Notes with a Stable Outlook.

KBRA is providing an update on Series 2024-1 and Series 2025-1 (collectively, the Notes) from ExteNet Issuer, LLC (the Issuer), the issuer of a communications infrastructure securitization. According to a recent notice posted by Wilmington Trust, N.A (the Indenture Trustee), the following events of default have occurred:

KBRA releases research providing an overview of the residential transition loan (RTL) lending and securitization market. The report covers recent issuance and collateral trends, differences between rated and unrated RTL securitizations, pricing spread performance, transaction structures, eligibility criteria, and performance to date.

KBRA assigns a ‘AAA’ rating to $25.0 million Series CCC Senior Notes and $25.0 million Series DDD Senior Notes, and assigns an ‘A+’ rating to $15.0 Series Y Mandatory Redeemable Preferred Stock ("MRPS") issued by Kayne Anderson Energy Infrastructure Fund, Inc. (the “Fund”). Concurrently, KBRA affirms the ratings assigned to the outstanding Senior Notes and MRPS issued by the Fund. The outlook on all ratings is Stable.

KBRA assigns preliminary ratings to two classes of notes issued by Sunrun Quintus Issuer 2026-2, LLC. The transaction is collateralized by a diversified pool of 37,595 leases and power purchase agreements (PPAs) associated with residential solar photovoltaic installations (PV Systems). The total Aggregate Discounted Solar Asset Balance (ADSAB) based on a discount rate of 7.5%, consisting of the discounted payments of the leases and PPAs is approximately $359.7 million.

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from Bayview Opportunity Master Fund VII Trust 2026-CES2 (BVCES 2026-2).

KBRA assigns preliminary ratings to 102 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-10 (SEMT 2026-10), a $740.4 million prime RMBS transaction. The pool is comprised of 586 first-lien, fully amortizing fixed rate mortgages with mostly 30-year maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 777 and moderate borrower equity, with a WA original LTV and WA original CLTV of 69.8% and 69.9%.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM9 (NRMLT 2026-NQM9), a $494.5 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were primarily originated by NewRez LLC (50.0%) and Champions Funding LLC (19.8%). In addition, all loans will be serviced by Shellpoint Mortgage Servicing, a brand and affiliate of NewRez LLC.

KBRA is pleased to announce the assignment of preliminary ratings to nine classes of BSPDF 2026-FL5, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months including a 180-day ramp-up period.

KBRA assigns preliminary ratings to six classes of notes issued from Avant Credit Card Master Trust (the "Master Trust"), Series 2026-1 (“AVCCT 2026-1”), a credit card ABS transaction. The ratings reflect the initial credit enhancement levels ranging from 38.86% for the Class A notes to 3.00% for the Class F notes. Credit enhancement on the notes consists of overcollateralization, subordination (except for the Class F Notes), a cash reserve account if funded after closing, and excess spread.

KBRA releases its latest 12 Things in Credit report, highlighting timely credit market themes drawn from our weekly podcast, 3 Things in Credit, hosted by KBRA’s Chief Strategist, Van Hesser. Among the wide-ranging topics Van discusses in this issue are the difference between the price of oil and the price of distillates, the market technicals around artificial intelligence (AI)-related debt issuance, and differing market views between real estate investment trusts (REIT) and business development companies (BDC).

KBRA assigns preliminary ratings to two classes of notes issued by volofin Finance (Ireland) II Designated Activity Company and volofin Finance US II LLC (together, VFIN 2026-1), an aviation loan ABS transaction.

KBRA releases its Q2 2026 Middle Market Borrower Surveillance Compendium, providing insights into credit quality across KBRA’s portfolio of rated direct lending transactions.

KBRA assigns preliminary ratings to four classes of notes issued by Upgrade Master Pass-Thru Trust, Series 2026-ST3 (“UMPT 2026-ST3”), a consumer loan ABS transaction. UMPT 2026-ST3 has initial hard credit enhancement levels ranging from 49.80% for the Class A Notes to 22.10% for the Class D Notes. Credit enhancement consists of overcollateralization, subordination of the junior note classes, except for the Class D notes, a cash reserve account, and excess spread.

KBRA assigns a long-term rating of AA to the County of Erie, NY General Obligation Bonds, consisting of Public Improvement Serial Bonds, Series 2026A and Refunding Serial Bonds, Series 2026 B. Concurrently, KBRA affirms the long-term rating of AA on outstanding General Obligation Bonds of the County. The Outlook on all obligations is Stable.

KBRA assigns preliminary ratings to 72 classes of mortgage-backed notes from PMT Loan Trust 2026-INV7 (PMTLT 2026-INV7), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-INV7 comprises 1,166 fixed-rate mortgages (FRMs) with an aggregate principal balance of $438.8 million as of the July 1, 2026 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (73.2%) and second homes (26.8%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 74.8%. The weighted average original credit score is 777, which is well within the prime mortgage range.

KBRA assigns a long-term rating of AA+ to the City of Atlanta, Georgia's (the City) Airport General Revenue Bonds (GARBs), Series 2026A-1 (Non-AMT) (Green Bonds), Series 2026A-2 (Non- AMT), Series 2026B-1 (AMT) (Green Bonds), and Series 2026B-2 (AMT) issued for Hartsfield-Jackson Atlanta International Airport (the Airport). Concurrently, KBRA affirms the long-term rating of AA+ for the City's outstanding Airport General Revenue Bonds and Passenger Facility Charge (PFC) Subordinate Lien Airport General Revenue Bonds (Hybrid PFC Bonds). The Outlook for all the City's Airport Revenue Bonds is Stable.

KBRA releases research examining the increasingly asymmetric performance of auto loan ABS across borrower credit profiles. Stronger borrowers have remained comparatively resilient, while borrowers with weaker credit profiles and higher payment burdens have accounted for a disproportionate share of delinquencies and losses. Pool-level averages such as weighted average (WA) credit score and WA payment-to-income (PTI) remain useful first-level indicators of a securitized pool’s credit quality, but they can obscure risk concentrations within borrower subgroups. As a result, the more revealing question is not only what the average borrower looks like, but how much of the pool is exposed to borrower pockets that have experienced the greatest performance deterioration.

On July 22, 2026, Anchorage, Alaska-based Northrim BanCorp, Inc. (NASDAQ: NRIM) (“Northrim” or “the company”), parent company of Northrim Bank, announced that it had entered into a definitive merger agreement with Medford, Oregon-based PBCO Financial Corporation (OTCID: PBCO), parent company of People’s Bank of Commerce ("People's Bank"). Under the agreement, PBCO will merge with and into Northrim in an all-stock transaction valued at ~$167 million, representing 1.73x tangible book value. The transaction is expected to close in 4Q26 or early 1Q27, subject to customary regulatory and shareholder approvals. Julia Beattie, President and CEO of People’s Bank, will remain with Northrim as Oregon Market President, while one PBCO director will join the boards of Northrim and Northrim Bank.

KBRA assigns its A+ rating to QTS Thunder Managing Issuer, LLC’s $3.25 billion senior secured term loans. The Outlook is Stable.

KBRA releases research examining the credit considerations associated with artificial intelligence (AI) compute infrastructure, including graphic processing units (GPU), tensor processing units (TPU), and other accelerator-intensive assets. This report considers these financings from project finance, structured finance, and corporate credit perspectives.

KBRA releases research that analyzes its cumulative default rates (KCDR) by rating category across 1-, 3-, 5-, and 10-year horizons, using data from 2011 through 2025. As part of KBRA's broader review of ratings performance, the report expands on the perspectives in our Global Rating Stability and Transition Study: 2011-2025, providing insight into cumulative default experience across sectors, geographies, and market environments.

KBRA is pleased to announce the assignment of preliminary ratings to eight classes of ARCREN 2026-FL2, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from CROSS 2026-NQM9 Mortgage Trust, an RMBS transaction issued under the CROSS shelf that is managed by CrossCountry Capital, LLC (“CCC”). CROSS 2026-NQM9 is a co-sponsored transaction with CCC and APF II RESI O4B, LLC. This $588.6 million transaction is collateralized by a pool of 1,156 residential mortgages, including a meaningful concentration of collateral that KBRA considers to be “non-prime” (68.5%), with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 81.5% and 18.5% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM; 62.1%) or exempt (37.5%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA assigns preliminary ratings to Series 2026-1 (Point 2026-1, or the Series 2026-1 Notes) from Point Broadband Funding, LLC (the Issuer), a communications infrastructure securitization (CIS) that is primarily collateralized by fiber-to-the-premises (FTTP) networks and related contracts.

KBRA assigns preliminary ratings to 69 classes of mortgage pass-through notes from OBX 2026-INV5 Trust, a prime RMBS transaction secured by second homes (38.2%) and investment properties (61.8%), collectively, non-owner occupied or “NOO” properties. The underlying collateral consists of 770 agency eligible, fixed-rate mortgages (FRMs) with an aggregate unpaid principal balance (UPB) of approximately $313.8 million as of the July 1, 2026 cut-off date. There are no originators comprising over 10% of the pool.