NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of net-lease mortgage notes, series 2017-1 (the “Notes”) issued by SCF RC Funding I LLC, SCF RC Funding II LLC & SCF RC Funding III LLC.
This transaction represents SCF Realty Capital LLC’s (“SCF RC”, or the “Company”) second securitization. The Series 2017-1 Notes will be issued as the second series in a master trust, and the indenture permits the issuance of additional series of notes. There is one additional series of notes issued under the master trust, with an expected outstanding balance of approximately $278.5 million as of the closing date for this series. The aggregate principal balance of all series within the master trust is approximately $526.6 million. The Issuers are wholly-owned subsidiaries of SCF RC.
The Notes will be secured by fee title to, and leasehold interest in ground leases on, 354 commercial real estate properties, the leases related to such properties, and all payments required thereunder. The aggregate collateral value for the portfolio is approximately $634.4 million.
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 & SCF RC Funding III 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 2017-1, Class A||A (sf)||$232,425,000|
|Series 2017-1, Class B||BBB (sf)||$15,675,000|
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 & SCF RC Funding III 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 & SCF RC Funding III LLC Pre-Sale Report
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).