KBRA Assigns Preliminary Ratings to TruPS Financials Note Securitization 2018-2

November 14, 2018

NEW YORK--(BUSINESS WIRE)--Nov 14, 2018--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes (the “Notes”) issued by TruPS Financials Note Securitization 2018-2 (“TFINS 2018-2”).

TFINS 2018-2 is a static cash flow CDO and will not allow for any reinvestments. The preliminary ratings reflect the initial credit enhancement levels, coverage tests including overcollateralization and interest rate tests for all Notes, excess spread, and a turbo payment that will amortize the Class A-1 Notes beginning in the eighth year using 60% of the proceeds remaining in the interest waterfall prior to making a distribution to the Preferred Shares.

The collateral in TFINS 2018-2 will mainly consist of trust preferred securities (“TruPS”) issued by community and regional banks and their holding companies along with TruPS, surplus notes, and a senior unsecured note issued by insurance companies and their holding companies. The obligors in the portfolio have a K-WARF of 366, which represents a weighted average portfolio assessment of approximately BBB-. The total portfolio par amount is $351.0 million with exposures to 45 banks and 17 insurance companies. KBRA has public ratings on eight of the banks. The portfolio is expected to be fully ramped at closing.

EJF CDO Manager LLC, an affiliate of EJF Capital LLC (“EJF Capital”), is the collateral manager. EJF Capital is headquartered in Arlington, VA and is a SEC registered investment advisor. Founded in 2005 by Manny Friedman and Neal Wilson, it has more than $6.9 billion of assets across a diverse group of alternative asset strategies for managed funds and separately managed accounts and $2.8 billion of assets as a collateral manager for existing securitizations. EJF Capital focuses on investment opportunities in financial institutions, which includes banks, insurance companies, REITs and specialty finance companies. The firm has 75 employees with an investment team of 30 professionals. This will be the seventh securitization of bank and/or insurance securities since 2015 for EJF Capital.

*There is one insurance related asset that pays interest at a fixed rate and is excluded from the WAS calculation

KBRA analyzed the transaction using published on August 7, 2018 and incorporated the and for analyzing the underlying collateral obligations.

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.

To access the ratings, pre-sale report and disclosures, click .

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About KBRA and KBRA Europe

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, is 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181114005917/en/

CONTACT: Analytical:

George Lyons, CFA, Director

(646) 731-3314


Fred De Leon, Director

(646) 731-2352


Ashley Phillips, Director

(301) 969-3185


Steven Zheng, Analyst

(646) 731-3379




SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2018.

PUB: 11/14/2018 04:21 PM/DISC: 11/14/2018 04:20 PM


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