Kroll Upgrades, Affirms Ratings on All Series of Stonebriar’s ABS

February 21, 2019, 07:00 AM

Filed Under: Corporate Ratings

Related: Asset Backed Securities, Dave Fate, Kroll Bond Rating Agency, Stonebriar Commercial Finance

Kroll Bond Rating Agency (KBRA) published its results from a comprehensive surveillance review of asset-backed securities (ABS) issued by subsidiaries of Stonebriar Commercial Finance. In completing its review, KBRA announced multiple rating actions, including 10 rating affirmations, 10 rating upgrades, and one new rating assigned.

In reviewing Stonebriar’s 2016-1 issuance ($229.21 million, issued in June 2016), KBRA took the following actions:

Class 2016-1A – Affirmed Rating of AAA (sf)
Class 2016-1B – Affirmed Rating of AA (sf)
Class 2016-1C – Affirmed Rating of A (sf)
Class 2016-1D – Upgraded Rating to BBB (sf)

In reviewing Stonebriar’s 2017-1 issuance ($311.431 million, issued in February 2017), KBRA took the following actions:

Class 2017-1A – Upgraded Rating to AA (sf)
Class 2017-1B – Upgraded Rating to A (sf)
Class 2017-1C – Upgraded Rating to BBB (sf)
Class 2017-1D – Upgraded Rating to BB (sf)

In reviewing Stonebriar’s 2017-2 issuance ($361.289 million, issued in November 2017), KBRA took the following actions:

Class 2017-2A – Upgraded Rating to AA (sf)
Class 2017-2B – Upgraded Rating to BBB+ (sf)
Class 2017-2C – Upgraded Rating to BBB- (sf)
Class 2017-2D – Upgraded Rating to B+ (sf)
Class 2017-2E – Upgraded Rating to B (sf)

In reviewing Stonebriar’s 2018-1 issuance ($577.597 million, issued in May 2018), KBRA took the following actions:

Class 2018-1A1 – Affirmed Rating of AAA (sf)
Class 2018-1A2 – Affirmed Rating of AAA (sf)
Class 2018-1B – Affirmed Rating of AA (sf)
Class 2018-1C – Affirmed Rating of A+ (sf)
Class 2018-1D – Affirmed Rating of BBB (sf)
Class 2018-1E – Affirmed Rating of BB (sf)
Class 2018-1F – Affirmed Rating of B (sf)
Class 2018-1G – Assigned Rating of B- (sf)

Dave B. Fate, President and CEO of Stonebriar, stated, “We appreciate the thoughtful work undertaken by the team at KBRA. The securitization market is one of several key funding alternatives for Stonebriar, and we place great importance on delivering on our obligations to all external constituencies, especially ABS investors. We believe these actions from KBRA reflect the continued strong performance of Stonebriar’s portfolio and our demonstrated servicing capabilities.”

Stonebriar acts as sponsor and servicer on all of its outstanding ABS which, as of February 2019, totaled approximately $915 million. Vedder Price P.C. continues to represent Stonebriar on all its ABS issuance.