Articles from Kroll Bond Rating Agency, LLC

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2026-CES11 (RCKT 2026-CES11).

KBRA assigns preliminary ratings to five classes of notes issued by PEAC Solutions Receivables 2026-2 (PEAC 2026-2), an equipment ABS transaction. PEAC 2026-2 will issue five classes of notes, including a short-term tranche. Credit enhancement includes excess spread, a reserve account, overcollateralization and subordination (except for Class C Notes). The overcollateralization is subject to a target equal to 18.10% of the current ASV and a floor equal to 1.00% of the initial ASV. The reserve account will be funded at 0.50% of the initial ASV and is non-amortizing.

KBRA assigns preliminary ratings to six classes of notes issued by AFG ABS II, LLC (AFG 2026-1), an equipment ABS transaction.

KBRA assigns preliminary ratings to two classes of notes issued by SunStrong Napoleon Issuer 2026-1 LLC. The transaction is collateralized by a diversified pool of 9,643 residential solar leases and power purchase agreements (PPAs) associated with photovoltaic installations (PV Systems). The total Aggregate Discounted Solar Asset Balance (ADSAB), based on a discount rate of 7.5%, consisting of the discounted payments of the leases and PPAs net of operating and maintenance expenses, is approximately $268.6 million.

KBRA assigns a long-term rating of A to the Ysleta Independent School District's, TX (the "District" or "YISD") Series 2026A Unlimited Tax Refunding Bonds, Series 2026B Unlimited Tax Refunding Bonds, and to parity outstanding unlimited tax general obligations (collectively, the "Unlimited Tax Obligations'). KBRA additionally assigns a long-term rating of A- to the Series 2026 Maintenance Tax Notes ("Limited Tax Obligations"). The rating Outlook is Stable.

KBRA releases the October 2026 issue of CMBS Trend Watch.

KBRA assigns preliminary ratings to Crunch Funding, LLC (the Issuer), Series 2026-1 (Crunch 2026-1), Class A-1 VFN, Class A-2-I, and Class A-2-II notes, a whole business securitization (WBS). Crunch 2026-1 represents the Issuer’s inaugural securitization in which Crunch, LLC (Crunch Fitness, the Manager, or the Company), a franchisor and operator of fitness clubs, is contributing substantially all of its securitized revenue-generating assets to the Issuer as collateral for the offered notes.

KBRA releases its third-quarter 2026 U.S. Bank Compendium, providing the latest view of the U.S. banking industry and analysis of 3Q26 results for publicly traded U.S. banks with KBRA ratings.

KBRA assigns preliminary ratings to four classes of notes issued by Aqua Finance Issuer Trust 2026-C (“Aqua 2026-C”), an asset-backed securitization collateralized by marine and recreational vehicle contracts as well as home improvement contracts.

KBRA assigns preliminary ratings to Merit Aviation 2026-2 Designated Activity Company and Merit Aviation 2026-2 LLC (Merit 2026-2 or the Issuer), an aviation loan ABS transaction. Merit 2026-2 represents the second aviation loan ABS securitization serviced by Merit AirFinance, L.P. (Merit, the Company or the Servicer), a direct subsidiary of Castlelake, L.P. (Castlelake). The Merit AirFinance platform, which was founded in 2025, provides financing to airlines and leasing companies for new and used aviation assets. The Company’s principal office is in New York. As of September 30, 2026, Merit has closed or been mandated on 14 facilities and 96 individual loans. Merit will retain 100% of the equity of the subject transaction at closing.

KBRA assigns preliminary ratings to three classes of notes issued by Navient Refinance Loan Trust 2026-C (“NAVRL 2026-C”), an asset-backed securitization collateralized by private education refinance loans. NAVRL 2026-C will issue three classes of notes totaling $682.80 million. Initial credit enhancement ranges from 15.27% for the Class A Notes to 8.00% for the Class C Notes. Credit enhancement consists of overcollateralization, subordination, and the senior and subordinate reserve accounts.

KBRA affirms the ‘AAA’ rating assigned to the Senior Notes and affirms the 'A' rating assigned to Mandatory Redeemable Preferred Shares ("MRPS") issued by ClearBridge Energy Midstream Opportunity Fund Inc. (“EMO” or the “Fund”). The Outlook on all ratings is Stable. KBRA assigns 'A' rating to newly issued MRPS Series S, Series T and Series U with a Stable Outlook. The ratings continue to be supported by the asset coverage, the credit quality, liquidity of the underlying assets, and the management experience of the Fund's investment adviser, Franklin Templeton Fund Adviser, LLC, and subadviser, ClearBridge Investments, LLC. As of September 30, 2026, and pro forma of MRPS Series S, Series T and Series U issuances, senior asset coverage was 670% and total asset coverage was 427%. The Fund is registered under the Investment Company Act of 1940 (the “'40 Act”) and is a non-diversified closed end investment fund. The Fund had its Initial Public Offering on June 10, 2011, and its shares are listed on the New York Stock Exchange under the symbol EMO. The Fund invests primarily in equity securities of energy midstream entities structured as both partnerships and corporations.

KBRA releases its 2027 Structured Credit Sector Outlook, which provides market and performance themes as of year-to-date 2026, as well as issuance volume and forecasts for 2027, collateral performance trends, and rating surveillance outcomes.

KBRA releases research examining how artificial intelligence (AI) is reshaping insurer operations and the implications for credit quality. As insurers move beyond experimentation toward production deployment, the central question is whether AI investments can generate measurable and sustainable improvements in underwriting, claims, expenses, and customer service while preserving effective risk management and operational resilience.

KBRA assigns preliminary ratings to 101 classes of mortgage-backed notes from PMT Loan Trust 2026-INV11 (PMTLT 2026-INV11), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-INV11 comprises 959 fixed-rate mortgages (FRMs) with an aggregate principal balance of $354.7 million as of the November 1, 2026 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (67.3%) and second homes (32.7%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 73.9%. The weighted average original credit score is 776, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to Pizza Hut Issuer LLC, Series 2026-1 Class A-1-VFN, Class A-1-LR, Class A-2-I and Class A-2-II Notes, a whole business securitization (WBS). The rating actions follow KBRA’s analysis which indicates that the transaction's credit enhancement for the notes and cash flows are sufficient to support the preliminary ratings.

KBRA assigns preliminary ratings to 13 classes of notes issued by Research-Driven Pagaya Motor Asset Trust 2026-6 and Research-Driven Pagaya Motor Trust 2026-6 (collectively “RPM 2026-6”), an auto loan ABS transaction. RPM 2026-6 has initial credit enhancement levels of 89.20% for the Class A-1 notes to 5.32% for the Class XS notes. Credit enhancement is comprised of overcollateralization (“O/C”), subordination of junior note classes (except for the Class D and Class XS notes), reserve accounts (including the capitalized interest amount and the Class XS Reserve Account) funded at closing, and excess spread.

KBRA releases its outlook for the U.S. residential mortgage-backed securities (RMBS) market, examining the key trends expected to shape issuance, credit performance, and market conditions in 2027. The report provides issuance forecasts for RMBS 2.0 and rated esoteric RMBS, assesses evolving collateral performance and spread trends, and reviews rating surveillance activity through October 2026.

KBRA releases its latest 12 Things in Credit report, highlighting timely credit market themes drawn from our weekly podcast, 3 Things in Credit, hosted by KBRA’s Chief Market Strategist, Van Hesser. Among the wide-ranging topics Van discusses in this issue are what is behind the spread widening in Hyperscaler CDS, the impact of tightening financial conditions on the Fed’s reaction function, and misconceptions about AI funding risk.

KBRA is pleased to announce the assignment of preliminary ratings to 16 classes of Benchmark 2026-V25, a $683.3 million CMBS conduit transaction collateralized by 35 commercial mortgage loans secured by 75 properties. The collateral properties are located throughout 27 MSAs, of which the three largest are New York (15.1% of pool balance), Dallas – Forth Worth (10.2%), and St. Louis (10.0%). The pool’s three largest property type exposures are office (32.0%), multifamily (28.5%), and retail (14.3%). The largest loan in the pool, Legacy Central (10.0%), is a 706,395 sf, suburban office property located in Plano, Texas, approximately 24 miles north of the Dallas CBD. The five largest loans, which also include West County Center (10.0%), Google Campus Phase II (7.3%), Fairfield Inn & Suites Brooklyn (4.4%), and Elder Portfolio (4.4%), represent 36.0% of the initial pool balance, while the top 10 loans represent 54.8%.

KBRA Analytics is pleased to announce the participation of leading industry professionals at its Distressed Credit Outlook: Signals, Stress & Opportunity event, taking place on November 10, 2026, in New York City. The event will bring together KBRA Analytics experts, market participants, and industry professionals to examine emerging signs of credit stress, market trends, and potential investment opportunities.

KBRA assigns preliminary ratings of ‘BBB- (sf)’ to the Series 2026-GT2, Class A Term Notes from FMC GMSR ISSUER TRUST, Freedom Mortgage Corporation’s (FMC) master trust issuer of notes backed by a participation certificate evidencing a participation interest in mortgage servicing rights (MSR) on loans underlying Ginnie Mae guaranteed mortgage backed securities.

KBRA assigns preliminary ratings to 102 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-14 (SEMT 2026-14), a $451.0 million prime RMBS transaction. The pool comprises 370 first-lien, fully amortizing, fixed-rate mortgages, primarily with 30-year maturity terms. The collateral has a weighted average (WA) original credit score of 773 and moderate borrower equity, with a WA original LTV and WA original CLTV of 70.1% and 70.1%, respectively.

KBRA assigns a long-term rating of AAA to the State of Connecticut Special Tax Obligation Bonds, Transportation Infrastructure Purposes, 2026 Series B. KBRA additionally affirms the long-term rating of AAA for the State's outstanding Special Tax Obligation Bonds, Transportation Infrastructure Purposes. The rating Outlook is Stable.

KBRA assigns preliminary ratings to six classes of notes issued by Avant Loans Funding Trust 2026-REV2 (“AVNT 2026-REV2”), an unsecured consumer loan ABS transaction. AVNT 2026-REV2 has initial hard credit enhancement levels of 73.25% for the Class A Notes to 5.29% for the Class F Notes. Credit enhancement consists of overcollateralization, yield supplement overcollateralization, subordination (except for the Class F Notes), a cash reserve account funded at closing, and excess spread.

KBRA releases its Q3 2026 Middle Market Borrower Surveillance Compendium, providing insights into credit quality across KBRA’s portfolio of rated direct lending transactions.

KBRA releases research examining the additional challenges states face in implementing Medicaid provisions of the One Big Beautiful Bill Act (OBBBA). Earlier this year, KBRA highlighted several significant programmatic challenges stemming from the law, including reduced federal funding, restrictions on states’ ability to increase their share of funding, and additional administrative costs. Building on that analysis, this report focuses on the extensive administrative requirements of OBBBA, which are likely to create further challenges for states, particularly given the less than 18-month period between the law’s enactment in July 2025 and its implementation deadline in January 2027.

KBRA assigns a long-term rating of AA- to El Paso Independent School District, TX outstanding Unlimited Tax School Building Bonds. The rating Outlook is Stable.

KBRA assigns a preliminary rating to one class of notes issued by Sabal Issuer 2026-3 LLC. The transaction is collateralized by a diversified pool of 16,137 leases and power purchase agreements (PPAs) associated with residential solar photovoltaic installations (PV Systems), some of which have energy storage equipment. The total aggregate discounted solar asset balance (ADSAB) based on a discount rate of 7.5%, consisting of the discounted payments of the leases and PPAs is approximately $412.0 million. The securitization share of the ADSAB is approximately $378.7 million.

KBRA assigns preliminary ratings to 16 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-MED3 (SEMT 2026-MED3), a $554.6 million prime RMBS transaction backed by 583 loans originated under Physician or Doctor Loan underwriting programs. These loans, generally referred to by KBRA as Medical Professional Mortgages (MPM), are typically originated through specialized prime mortgage programs designed for healthcare professionals with high earnings potential and income stability, but potentially elevated student loan debt, lower early-career earnings, and limited savings for down payments. The pool comprises 29.6% fixed-rate mortgages (FRMs) and 70.4% hybrid adjustable-rate mortgages (ARMs). A majority of the loans (97.6%) are designated as QM Safe Harbor (APOR).

KBRA assigns a rating of A- to MidCap Financial Issuer Trust's $500 million 7.050% senior unsecured notes due November 15, 2029. The rating Outlook is Stable. MidCap Financial Issuer Trust is a wholly-owned subsidiary of MidCap FinCo Intermediate LLC ("the company" or "MidCap"), which serves as guarantor of the debt. The proceeds will be used to repay senior secured debt.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes issued by PRKCM 2026-AFC7 Trust, an RMBS transaction sponsored by Park Capital Management Sponsor LLC. The $381.8 million transaction is collateralized by a pool of 957 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) representing 98.0% and 2.0% of the pool, respectively. The transaction includes a meaningful concentration of collateral that KBRA considers non-prime. All of the loans were originated by AmWest Funding Corporation, which also currently services the pool.

KBRA assigns preliminary ratings to 13 classes of mortgage-backed notes from OBX 2026-NQM17 Trust, a $781.5 million non-prime RMBS transaction. The underlying collateral, comprising 1,555 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 96.0% and 4.0% of the pool, respectively. All of the loans are either classified as non-qualified mortgages (Non-QM; 18.5%) or exempt (64.1%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. There were no originators comprising over 10% of the pool.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM11 (NRMLT 2026-NQM11), a $497.2 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were originated by NewRez LLC (66.5%) and Cake Mortgage Corp (33.5%). In addition, all loans will be serviced by Shellpoint Mortgage Servicing, a brand and affiliate of NewRez LLC.

KBRA is pleased to announce the assignment of preliminary ratings to 18 classes of Benchmark 2026-B44, an $805.1 million CMBS conduit transaction collateralized by 63 commercial mortgage loans secured by 79 properties. The collateral properties are located throughout 20 MSAs, of which the three largest are New York (32.9% of pool balance), Denver (9.9%), and Las Vegas (8.0%). The pool’s three largest property type exposures are retail (38.9%), multifamily (26.3%), and office (15.2%). The largest loan in the pool, Colorado Mills (9.9%), is a 911,906 sf collateral portion of a 1.1 million sf outlet center located in Lakewood, Colorado, approximately seven miles west of the Denver CBD. The five largest loans, which also include Phoenix Industrial Portfolio XVI (8.1%), 700 6th Street (6.7%), OKC Outlets (6.5%), and The Falls (6.2%), represent 37.4% of the initial pool balance, while the top 10 loans represent 56.7%.

KBRA assigns preliminary ratings to Neighborly Issuer LLC, Series 2026-1 (Neighborly 2026-1), a whole business securitization (WBS). Neighborly 2026-1 represents the Issuer’s fifth series of notes issued from existing master trust, which is collateralized by substantially all of the revenue-generating assets related to the Neighborly securitization brands in the United States and certain international revenue rights.

KBRA assigns preliminary ratings to notes issued by OnDeck Asset Securitization IV, LLC (“ODAS IV” or the “Issuer”).ODAS IV will issue four classes of Series 2026-2 Notes (“ODAS IV 2026-2”) totaling $500.25 million.

KBRA announces the assignment of preliminary ratings to four classes of BX 2026-AIRC, a CMBS single-borrower securitization. The collateral for the transaction is a $3.340 billion floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrower’s fee simple and leasehold interests in 29 multifamily properties. In total, the portfolio contains 9,389 units and the properties are located across eight states and Washington D.C., the five largest of which are Florida (34.2%), California (30.6%), Maryland (9.0%), Colorado (6.0%), and Pennsylvania (5.7%). The complexes, which range in size from 78 to 770 units, were built between 1958 and 2022 and on average are approximately 37 years old. As of October 2026, the portfolio was 94.2% leased.

KBRA assigns preliminary ratings to the Series 2026-1, Class A-1, Class A-2 Notes, Class B Notes and Class C Notes (the Series 2026-1 Notes) from Diamond Infrastructure Funding LLC (the Issuer), a communications infrastructure securitization.

KBRA expects to rate MidCap Financial Issuer Trust's issuance of senior unsecured notes A-. The rating Outlook is Stable. MidCap Financial Issuer Trust is a wholly-owned subsidiary of MidCap FinCo Intermediate LLC ("the company" or "MidCap"), which serves as guarantor of the debt. The proceeds will be used to repay senior secured debt.

KBRA assigns preliminary ratings to Blue Stream Issuer, LLC Series 2026-1 (Blue Stream 2026-1), a communications infrastructure securitization issued by Blue Stream Issuer, LLC (the Issuer). Concurrently, KBRA anticipates affirming the outstanding ratings on the Series 2023-1 Class A-1-V Notes and Series 2024-1 Notes and withdrawing the ratings on the Series 2023-1 Class A-2, Class B and Class C Notes following their repayment at the closing of Series 2026-1.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the October 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS remained relatively stable at 7.7% in October, down 2 basis points (bps) from September, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) increased marginally by 4 bps. Compared to a year ago, delinquency is down 24 bps and the distress rate is 52 bps lower.

KBRA assigns preliminary ratings to 96 classes of mortgage pass-through certificates from Chase Home Lending Mortgage Trust 2026-AGY3 (CHASE 2026-AGY3), a prime RMBS transaction comprising 810 residential mortgages with an aggregate interest-bearing principal balance of approximately $412.6 million, as of the cut-off date. The underlying pool consists of loans that are collateralized by owner-occupied properties (98.2%) and second homes (1.8%). The pool consists of 100% Agency Eligible loans.

KBRA assigns preliminary ratings to five classes of notes issued by RKTL 2026-4 an asset-backed securitization collateralized by unsecured consumer loans. This transaction represents Rocket Loans, LLC (“Rocket Loans”, or the “Company”) sixth 144A unsecured consumer loan ABS securitization.

KBRA assigns preliminary ratings to 44 classes of mortgage-backed notes from PMT Loan Trust 2026-CNF10 (PMTLT 2026-CNF10), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-CNF10 comprises 769 agency-eligible, conforming mortgage loans on owner-occupied homes with an aggregate stated principal balance of approximately $364.4 million as of the November 1, 2026 cut-off date. The underlying collateral consists of fully amortizing, mostly 30-year fixed-rate mortgages originated under the general QM designation. The pool is characterized by a weighted average (WA) original loan-to-value (LTV) of 75.4%, a WA original combined LTV (CLTV) of 75.5% and a WA original credit score of 770.

KBRA publishes the issuer rating of BB, senior secured debt rating of BBB-, and preferred stock rating of BB- for ACRES Commercial Realty Corp. (NYSE: ACR, “ACRES”, or “the company”). The Outlook for the ratings is Stable. On August 5, 2026, these ratings were assigned on an unpublished basis.

It is being widely reported that one of the U.S.’s top 30 law firms Weil, Gotshal & Manges LLP (Weil) intends to pursue an orderly wind-down process over the coming months after a flurry of recent high-profile senior partner departures and failed merger efforts.

KBRA assigns a rating of BBB to Franklin BSP Capital Corporation's (FBCC) $300 million, 7.25% senior unsecured notes due 2029. The rating Outlook is Stable. Proceeds will be used for the repayment of secured debt.

KBRA assigns a long-term rating of AAA to the Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Bonds, Series 2026C (Green Bonds) and Sales Tax Revenue Bonds, Series 2026D (Put Bonds) (Green Bonds). KBRA additionally affirms the long-term rating of AAA for outstanding parity bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to two classes of notes issued by IGS Solar Shamrock Issuer 2026-1, LLC. The transaction is collateralized by a diversified pool of 18,488 leases and power purchase agreements (PPAs) associated with residential solar photovoltaic installations (PV Systems). The total Aggregate Discounted Solar Asset Balance (ADSAB) based on a discount rate of 7.25%, consisting of the discounted payments of the leases and PPAs, is approximately $374.7 million.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from Hildene 2026-NQM1 Mortgage Trust (HILD 2026-NQM1), an RMBS transaction sponsored by Hildene-CCC Loan Acquisition II, LLC (“Hildene”), with mortgage loans acquired from Button Finance, Inc., acting as the aggregator. The $292.5 million transaction is collateralized by a pool of 381 residential mortgages, including a meaningful concentration of collateral that KBRA considers to be “non-prime” (87.8%), with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 95.7% and 4.3% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM; 54.5%) or exempt (44.3%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. The three largest originators were Emporium TPO LLC, JSB Mortgage Corp. and FundLoans Capital Inc., each accounting for approximately 19.9% of the pool by principal balance.

KBRA assigns preliminary ratings to 99 classes of mortgage-backed notes from PMT Loan Trust 2026-INV10 (PMTLT 2026-INV10), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-INV10 comprises 1,081 fixed-rate mortgages (FRMs) with an aggregate principal balance of $409.1 million as of the November 1, 2026 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (71.2%) and second homes (28.8%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 76.3%. The weighted average original credit score is 775, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from OBX 2026-CFNQM1 Trust, a $392.7 million non-prime RMBS transaction. The underlying collateral, comprising 880 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 99.9% and 0.1% of the pool, respectively. All loans are classified exempt (100.0%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA, a global full-service credit rating agency, today announced that KBRA Japan has received registration as a Credit Rating Agency from Japan’s Financial Services Agency (JFSA), marking a significant milestone in the firm’s continued global expansion.

KBRA assigns a long-term rating of AAA with a Stable Outlook to the New Mexico Finance Authority State Transportation Revenue Bonds (State Transportation Commission - Subordinate Lien), Series 2026B. Concurrently, KBRA affirms the long-term rating of AAA with a Stable Outlook on the outstanding New Mexico Finance Authority State Transportation Revenue Bonds (State Transportation Commission - Senior Lien and Subordinate Lien).

KBRA assigns preliminary ratings to FTAI MRE 2026-2 Cayman Limited and FTAI MRE 2026-2 US LLC (MRE 2026-2 or the Issuer), an aviation ABS transaction. MRE 2026-2 represents the second aviation ABS transaction sponsored by FTAI Aviation (FTAI, or the Company). MRE 2026-2 will be serviced by FTAI Aircraft Leasing DAC, FTAI AirOpCo UK Ltd, and FTAI Aircraft Leasing LLC (FTAI Aircraft Leasing, or the Servicers), which are wholly owned subsidiaries of FTAI Aviation. The Company has a $17 billion market capitalization and currently owns and manages approximately $9 billion of aircraft engines and parts. Affiliates of FTAI will retain the equity position in MRE 2026-2 at closing.

KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of Benchmark 2026-V24, a $759.3 million CMBS conduit transaction collateralized by 43 commercial mortgage loans secured by 74 properties. The collateral properties are located throughout 25 MSAs, of which the three largest are New York (28.1% of pool balance), Washington - NoVA - MD (11.8%), and Orlando (6.1%). The pool’s three largest property type exposures are retail (25.1%), office (22.4%), and lodging (12.7%). The largest loan in the pool, Hall of the States (9.9%), is a 619,328 sf, CBD office property located in Washington, DC, within the Capitol Hill neighborhood. The five largest loans, which also include Old Edwards Portfolio (8.6%), Compass Storage National Portfolio 2.0 (8.6%), SoHo Centrale (7.3%), and Hamilton Place (6.2%), represent 40.5% of the initial pool balance, while the top 10 loans represent 57.5%.

KBRA assigns preliminary ratings to 96 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2026-9 (JPMMT 2026-9). The pool comprises 292 first-lien, fixed-rate residential mortgage loans with an aggregate unpaid principal balance of $340.9 million as of the October 1, 2026 cut-off date. The pool includes both non-conforming (79.3%) and conforming (20.7%) loans. The weighted average original credit score is 770, which is consistent with prime mortgage collateral.

KBRA assigns a long-term rating of BBB- to the Board of Education of the City of Chicago Unlimited Tax General Obligation Bonds (Dedicated Revenues), Series 2026A. KBRA additionally affirms the long-term ratings of BBB- for the District's Unlimited Tax General Obligation Bonds (Dedicated Revenues) without special revenue legal opinions and BBB for the District's Unlimited Tax General Obligation Bonds (Dedicated Revenues) with special revenue legal opinions. The rating Outlook remains Negative.

KBRA assigns preliminary ratings to three classes of notes from US Signal Issuer LLC and US Signal Co-Issuer LLC Series 2026-1 and Series 2026-2 (together, Series 2026-1/2), a colocation data center ABS transaction. The transaction represents the first ABS issuance issued by US Signal Issuer LLC and US Signal Co-Issuer LLC. All series share in the same collateral pool.

KBRA assigns preliminary ratings to five classes of notes issued by Foundation Finance Trust 2026-2 (“FFIN 2026-2”), an asset-backed securitization collateralized by unsecured consumer loans primarily used for home improvements.

KBRA assigns preliminary ratings to 96 classes of mortgage pass-through certificates from Chase Home Lending Mortgage Trust 2026-JINV2 (CHASE 2026-JINV2), a prime investor RMBS transaction comprising 327 residential mortgages with an aggregate interest-bearing principal balance of approximately $398.8 million as of the October 1, 2026 cut-off date. The underlying pool primarily consists of loans that are collateralized by investment properties (94.7%). The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the WA original CLTV of 72.5%. The weighted average original credit score is 778, which is well within the prime mortgage range.

KBRA assigns preliminary ratings to five classes of notes issued by BHG Securitization Trust 2026-3CON (“BHG 2026-3CON”), an asset-backed securitization collateralized by a pool of unsecured consumer loans (“Consumer Loans”).

KBRA releases its quarterly report highlighting our Chief Markets Strategist Van Hesser’s view on key economic indicators, as well as what he identifies as the most influential factors driving credit markets in the upcoming quarter. The report also examines credit market valuations in the context of current and future market conditions.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through notes from CLIP 2026-NQM2 Trust, a $349.3 million non-prime RMBS transaction issued by Itasca Park LLC as sponsor. The underlying collateral comprises 602 primarily fixed-rate residential mortgages (FRMs). Guaranteed Rate Entities (28.1%) is the largest originator, and all loans are serviced by Select Portfolio Servicing, Inc. The loans are either classified as non-qualified mortgages (Non-QM) (30.0%), exempt (41.4%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule, QM: Safe Harbor (APOR) (27.5%), or QM: Rebuttable Presumption (APOR) (1.1%).

KBRA releases its recap of the ABS East 2026 Conference, held on October 18-21 at the Fontainebleau Miami Beach. Hosted by FT Live and the Fixed Income Investor Network (FIIN), the 32nd annual conference was described by organizers as the largest ABS East to date, with record attendance and sponsor participation.

KBRA publishes the senior unsecured debt rating of BBB-, the subordinated debt rating of BB+, and the short-term debt rating of K3 for NewtekOne, Inc. (NASDAQ: NEWT) (“Newtek” or “the company”). Additionally, KBRA publishes the deposit and senior unsecured debt ratings of BBB, the subordinated debt rating of BBB-, and the short-term deposit and debt ratings of K3 for lead bank subsidiary, Newtek Bank, N.A. (“the bank”). The Outlook for all long-term ratings is Stable. These ratings were assigned on an unpublished basis on May 14, 2026.

KBRA is pleased to announce the assignment of preliminary ratings to four classes of BX 2026-PURE5, a Canadian CMBS single-borrower securitization. The collateral for the transaction is a CAD 515.0 million interest-only mortgage loan comprising a CAD 386.2 million fixed rate component and a CAD 128.8 million floating rate component. The loan is secured by the borrowers’ fee simple interests in 21 industrial assets totaling 2.9 million sf. The properties are located in Ontario (77.9%) and Quebec (22.1%). As of September 2026, the portfolio was 88.7% leased to 78 tenants.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from PMT Loan Trust 2026-DSC1 (PMTLT 2026-DSC1), the first DSCR RMBS transaction sponsored by PennyMac Corp. (PennyMac), to be solely backed by loans underwritten to debt-service coverage ratio (DSCR) guidelines. The underlying pool ($298.1 million), comprising 853 rental property mortgages, is characterized by loans underwritten with moderate (65.5%) original combined loan-to-value (CLTV) ratios. The loans in the transaction will be fully serviced by PennyMac. The mortgage loans are seasoned approximately 3 months and include both fixed-rate mortgages (FRMs; 99.3%) and adjustable-rate mortgages (ARMs 0.7%). Additionally, approximately 13.0% of the pool has an initial interest-only period. All the loans in the pool were categorized as exempt from the ATR/QM rule due to being originated for business purposes.

KBRA assigns a long-term rating of AA to the Department of Water and Power of the City of Los Angeles (LADWP or the Department) Water System Revenue Bonds, 2026 Series B. The Outlook is Stable.

KBRA assigns a long-term rating of AAA to the Dormitory Authority of New York State State Personal Income Tax Revenue Bonds (General Purpose), Series 2026C (Tax-Exempt) and affirms the long-term rating of AAA for the State's outstanding State Personal Income Tax Revenue Bonds. The rating Outlook is Stable.

KBRA is pleased to announce the assignment of preliminary ratings to nine classes of BSPDF 2026-FL6, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months.

KBRA assigns preliminary ratings to ten classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2026-6 (AOMT 2026-6), a $250.6 million non-prime RMBS transaction. The underlying collateral, comprised of 381 residential mortgages, and includes a meaningful concentration of collateral that KBRA considers to be “non-prime.” All the loans are either classified as non-qualified mortgages (62.8%) or exempt (37.2%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Angel Oak Mortgage Solutions originated 65.0% of the pool, with no other originator comprising over 10% of the collateral.

KBRA assigns a rating of BBB with a Stable Outlook to the $500 million senior unsecured notes issued by Cantor Fitzgerald, L.P. (“Cantor”, "CFLP", or “the firm”) with a final maturity date of October 15, 2029. The proceeds will be used to refinance existing senior unsecured debt of $350 million that was scheduled to mature on April 14, 2027 and for general corporate purposes.

KBRA releases research examining the performance of 2012-16 vintage commercial mortgage-backed securities (CMBS) conduit transactions as they approach the end of their life cycles, with a focus on transaction tail periods, principal paydowns and losses, and interest payment disruptions as the remaining underlying loans mature and undergo workouts. CMBS conduit securitizations issued from 2012 through 2016 were predominantly collateralized by 10-year loans, most of which had prepayment protections that limited early refinancing. Almost all of the underlying loans have since reached their scheduled maturity dates or will by year-end, providing an opportunity to assess the performance of these transactions as they season beyond 10 years. While most of these securitizations remain outstanding, a substantial portion of their original collateral has paid down. Tail risk, adverse selection, potential maturity defaults, and variability in cash flow distributions are long-recognized behaviors of conduit CMBS and are considered in credit ratings at issuance. The typically long-dated rated final distribution dates of certificates also recognize the potential for loan extensions and protracted asset resolutions beyond original loan maturities