NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) announces the preliminary ratings on one note class of FNA 2015-1 Trust, a property tax lien ABS transaction.
This transaction represents the third term securitization for First National Assets (FNA or “the Company”). The initial collateral for the transaction will be comprised of property tax lien certificates from municipalities within the states of Alabama, Arizona, Florida, Illinois, Indiana, Maryland, Ohio, and South Carolina.
The initial collateral pool includes approximately $68.1 million of property tax lien certificates as of October 30, 2015. The weighted average age of the initial collateral pool is approximately 2.7 months and the weighted average lien to value is approximately 6.2%. The transaction features a new tax lien account totaling $18 million at closing, which may be used to purchase tax liens (up to $25 million) on new properties that meet certain eligibility criteria on or prior to the payment date in July 2016. The transaction also includes a subsequent tax lien account totaling $7.5 million at closing to purchase subsequent tax liens on properties already subject to tax liens in the initial pool, as well as subsequent liens on properties purchased via the new tax lien account.
Credit enhancement consists primarily of overcollateralization, cash reserve accounts, amounts in the new and subsequent tax lien accounts and excess spread. The transaction is structured to de-lever during periods when no subsequent liens or new tax liens are purchased, or when collections exceed the amount of new and subsequent tax lien purchases.
KBRA used the Property Tax Lien ABS Rating Methodology to analyze the transaction’s underlying collateral pool, the proposed capital structure and FNH’s historical performance data.
For complete details on the analysis, please see KBRA’s Pre-Sale Report, “FNA 2015-1 Trust”, which was published today at www.krollbondratings.com.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
Preliminary Ratings Assigned: FNA 2015-1 Trust
| Class | Rating | Initial Principal Balance | ||||
| A | AAA (sf) | $90,000,000 | ||||
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
