NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of net-lease mortgage notes, series 2016-1 (the “Notes”) issued by SCF RC Funding I LLC & SCF RC Funding II LLC.
This transaction will be the first series issued by SCF RC Funding I LLC and SCF RC Funding II LLC within the master trust, which will be secured by fee title to, or leasehold interest in ground leases on, 256 commercial real estate properties, the leases related to such properties and all payments required thereunder. The portfolio has an aggregate collateral value of approximately $351.7 million as of September 2016.
This transaction will represent the first securitization for SCF Realty Capital LLC (“SCF RC”, the “Property Manager” or the “Company”). SCF RC is the real estate division of Stonebriar Commercial Finance. The Company’s main focus is on the origination of single-tenant, triple-net leased, operationally essential real estate across a variety of industries.
The transaction will benefit from sufficient credit support, along with a dynamic transaction structure that accelerates principal payments to the noteholders upon the weakening of collateral performance. Such structural features include cash sweep conditions and servicer replacement events as further described in the SCF RC Funding I LLC & SCF RC Funding II LLC Presale Report.
KBRA analyzed the transaction using KBRA’s General Rating Methodology for Asset-Backed Securities published on July 30, 2012 as well as principals from its CMBS Property Evaluation Methodology published on December 3, 2015.
|Series and Class||Rating||Principal Balance (USD)|
|Series 2016-1, Class A||A (sf)||$263,500,000|
|Series 2016-1, Class B||BBB (sf)||$17,250,000|
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled Disclosure is available at the following link: ABS: SCF RC Funding I LLC & SCF RC Funding II LLC Representations and Warranties Disclosure.
Related Publications: (available at www.kbra.com)
- General Rating Methodology for Asset-Backed Securities
- SCF RC Funding I LLC & SCF RC Funding II LLC Presale Report
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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).