Kroll Bond Rating Agency Assigns Preliminary Ratings to SCF RC Funding I LLC, SCF RC Funding II LLC and SCF RC Funding III LLC, Series 2017-1

NEW YORK--()--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.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, which was published today at www.kbra.com.

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)

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).

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Xilun Chen, Senior Director
(646) 731-2431
xchen@kbra.com
or
Fred Perreten, Director
(646) 731-2454
fperreten@kbra.com
or
Anthony Nocera, Senior Managing Director
(646) 731-2350
anocera@kbra.com
or
Lenny Giltman, Managing Director
(646) 731-2378
lgiltman@kbra.com
or
Follow us on Twitter!
@KrollBondRating

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Xilun Chen, Senior Director
(646) 731-2431
xchen@kbra.com
or
Fred Perreten, Director
(646) 731-2454
fperreten@kbra.com
or
Anthony Nocera, Senior Managing Director
(646) 731-2350
anocera@kbra.com
or
Lenny Giltman, Managing Director
(646) 731-2378
lgiltman@kbra.com
or
Follow us on Twitter!
@KrollBondRating