NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns a rating of A(sf) to XXIII Capital Financing I PLC Class A Notes. The notes are newly issued asset-backed securities secured by a portfolio of receivable purchases and loans to European soccer clubs.
The notes are secured by a portfolio of nine receivable purchases and loans (the “Receivables”) associated with media rights fees and transfer fee payments due to European soccer clubs. The aggregate principal associated with the Receivables is approximately $71.3 million. The weighted average tenor of the Receivables is approximately 19 months. The transaction benefits from credit enhancement in the form of a non-payment credit insurance policy, excess spread, subordination, overcollateralization, an interest reserve account and an administrative expenses account.
Each Receivable in the portfolio is subject to a credit insurance policy (“Policy”) with an insured value of 90% of the total amount of the security under the respective agreement governing a Receivable. The Policies cover payment default for each underlying Receivables in the pool. The aggregate insured value for the Policies is approximately $68.0 million. The Insured Value fully covers the principal and expected interest associated with the Class A Notes in the transaction.
KBRA analyzed XXIII Capital Financing 1 PLC using the General Rating Methodology for Asset-Backed Securities published on July 30, 2012. The Receivables fall within Category 1: Financial Assets. The key determinants considered in the rating outcome are: a structural and legal analysis of the transaction and an analysis of the master form of the non-payment credit insurance policy.
For complete details on the analysis, please see our New Issue Report, XXIII Capital Financing 1 PLC, which was published on January 14, 2016 at www.kbra.com.
| Class | Rating | Initial Principal Balance | ||||
| Class A Notes | A (sf) | $64,200,000 | ||||
| Class B Notes | NR | $8,793,000 | ||||
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