NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns a final rating to the Class A notes of Harvest SBA Loan Trust 2018-1 LLC, Series 2018-1, a securitization collateralized by the unguaranteed portion of Small Business Administration (“SBA”) 7(a) loans.
The collateral consists of 298 SBA 7(a) loans with an unguaranteed balance of $99.1 million, which represents approximately 25% of the full outstanding current principal balance. The collateral has an average loan balance of approximately $332.5 thousand and a weighted average (WA) remaining term of approximately 279 months. All but seven loans are amortizing, monthly pay, floating rate loans, with an original term of 25 years. The remaining seven are also floating rate loans but have shorter original terms, either 10-year or 15-year. The obligors have a WA FICO of 718 and the property used to collateralize the loans are all 51% or greater owner-occupied commercial real estate properties. The WA appraisal loan to value (LTV) of the pool is 76.9%.
The transaction structure includes the Class A Notes, and two Ownership Certificates, the Class OC-1 and Class OC-2. Credit enhancement for the Class A Notes includes overcollateralization, a cash reserve account, performance triggers and excess spread. The Class A Notes initially benefited from 15% overcollateralization. The priority of payments accelerates the repayment of the Class A Notes until a 68% advance rate (32% overcollateralization) is achieved, at which point any additional funds will continue through the priority of payments and ultimately repay the Class OC-1 and Class OC-2 Certificates on a pro rata basis.
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Rating Assigned: Harvest SBA Loan Trust 2018-1, Series 2018-1 |
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| Series 2018-1 | Rating | Initial Principal Balance | ||
| Class A | BBB+ (sf) | $90,790,000 | ||
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- Harvest SBA Loan Trust 2018-1, Series 2018-1 New Issue Report
- Global General Rating Methodology for Asset-Backed Securities
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
