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Kroll Bond Rating Agency Assigns Preliminary Ratings to Alterna Funding II, LLC, 2015-1Kroll Bond Rating Agency (KBRA) announces the preliminary ratings on two note classes of Alterna Funding II, LLC, a property tax lien ABS (News - Alert) transaction. This transaction represents the second term securitization for Alterna Tax Asset Group, LLC (Alterna or "the Company"). The initial collateral pool is comprised of property tax lien certificates from municipalities within the states of Arizona, Florida, Illinois, Maryland, Montana, New Jersey, New York, and South Carolina. The initial collateral in the transaction includes approximately $48.5 million of property tax liens as of the initial cut-off date. The weighted average age of the initial collateral pool is approximately 5.6 months. The property types related to the initial portfolio consist of residential (73.6% by redemptive value), commercial (24.2%), vacant land (0.9%) and agricultural (1.2%). The transaction features a new tax lien account totaling $11.5 million at closing, which may be used to purchase tax liens (up to $20.175 million) on new properties that meet certain eligibility criteria up to six months after closing. The transaction also includes a subsequent tax lien account totaling $8.5 million at closing to purchase subsequent tax liens on properties subject to either tax liens in the initial pool or to tax liens purchased from the new tax lien account. Credit enhancement is comprised of overcollateralization, a cash reserve account, amounts in the additional and subsequent tax lien accounts, excess spread and in the case of the Class A notes, subordination of the Class B notes. The transaction is structured to de-lever during periods when no subsequent liens or new tax liens are purchased, or when collections exceed the amount of subsequent and new tax lien purchases. KBRA used the Property Tax Lien ABS Rating Methodology to analyze the transaction's underlying collateral pool, the proposed capital structure and Alterna's historical performance data. KBRA also conducted an operational review of the Company and will review the transaction's operative agreements and legal opinions prior to closing. For complete details on the analysis, please see KBRA's Pre-Sale Report, Alterna Funding II, LLC which was published today at www.krollbondratings.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings. Preliminary Ratings Assigned: Alterna Funding II, LLC, Series 2015-1
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). View source version on businesswire.com: http://www.businesswire.com/news/home/20150817006353/en/ |
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