Articles from Kroll Bond Rating Agency, LLC

KBRA assigns a long-term rating of AAA for the Harris County Flood Control District, TX Improvement Bonds Refunding Bonds Series 2026. Additionally, KBRA affirms the long-term rating of AAA for the District's Limited Tax Obligations and Contract Tax Obligations. The rating Outlook is Stable.

KBRA assigns preliminary ratings to 22 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-MED2 (SEMT 2026-MED2). SEMT 2026-MED2 represents the second publicly-rated RMBS backed by loans originated pursuant to Physician or Doctor Loan underwriting programs. These loans, which KBRA generally refers to as Medical Professional Mortgages (MPM), typically originated through specialized prime mortgage programs designed for borrowers in the healthcare field whose earnings potential and income stability are high but where personal debt (typically student loan driven) is high and early career earnings and savings/down payment levels are low. SEMT 2026-MED2 is collateralized by a pool of 572 of such loans, aggregating $524.1 million in UPB, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 42.9% and 57.1% of the pool, respectively. A majority of the loans (93.8%) are designated as QM Safe Harbor (APOR).

KBRA assigns a long-term rating of AAA to the Harris County, TX Permanent Improvement Refunding Bonds, Series 2026A; Permanent Improvement Tax and Revenue Certificates of Obligation, Series 2026A and 2026B; and Unlimited Tax Road Refunding Bonds, Series 2026A. KBRA additionally affirms the long-term rating of AAA for the County's outstanding Limited Tax Obligations and Unlimited Tax Obligations. The rating Outlook is Stable.

KBRA assigns preliminary ratings to 94 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2026-6 (JPMMT 2026-6). The pool comprises 264 first-lien, fixed-rate residential mortgage loans with an aggregate unpaid principal balance of $336.6 million as of the July 1, 2026 cut-off date. The pool includes both non-conforming (86.2%) and conforming (13.8%) loans. The weighted average original credit score is 776, which is consistent with prime mortgage collateral.

KBRA Releases the June 2026 issue of CMBS Trend Watch.

KBRA releases research that reviews the impact on capital stemming from the Basel III Endgame Proposal to modernize the regulatory capital framework of the banking system. The report focuses on the proposal related to the risk weighting of residential mortgage loans, highlighting the proposed changes and their likely subsequent effect on banks' risk weighted assets. In doing so, the report illuminates the amount of potential capital "freed up" by the proposal, which we expect to be meaningful, though not transformational. We further examine recent trends in regulatory capital ratios, summarizing the various market factors since the global financial crisis and their impact on bank capital management. Finally, we conclude with commentary on our ongoing dialogue with bank management teams and the likely effect on near-term capital management.

KBRA is pleased to announce the assignment of preliminary ratings to eight classes of AREIT 2026-CRE12, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months.

KBRA assigns preliminary ratings to 67 classes of mortgage pass-through notes from OBX 2026-J2 Trust, a $334.8 million prime RMBS transaction. The underlying collateral, comprising 270 fixed-rate, fully amortizing loans is characterized by moderate borrower equity, as evidenced by the WA original LTV of 70.4%, and has a WA original credit score of 781.

KBRA assigns an A- insurance financial strength rating (IFSR) to TruSpire Retirement Insurance Company (“TruSpire”). The Outlook for the rating is Stable.

KBRA assigns an A- insurance financial strength rating (IFSR) to Malibu Life Reinsurance SP 1 (Malibu Life Re SP1), a segregated portfolio established by Malibu Life Reinsurance SPC for the benefit of a single reinsurance counterparty. The Outlook for the rating is Stable.

KBRA affirms the 'AAA' ratings assigned to the Senior Notes and affirms the 'A+' ratings assigned to the Mandatory Redeemable Preferred Shares ("MRPS") issued by Tortoise Energy Infrastructure Corp. (the "Fund" or "TYG") managed by Tortoise Capital Advisors L.L.C. ("Tortoise"). Additionally, KBRA assigns a 'AAA' rating to Senior Notes Series XX and Series YY and an 'A+" rating to MRPS Series K and Series L. The Outlook for all ratings is Stable.

KBRA assigns preliminary ratings to four classes of STAR 2026-SFR8 single-family rental pass-through certificates.

KBRA assigns an A rating to the Class A Notes, a BBB rating to the Class B Notes, a BBB- rating to the Class C Notes, and a BB+ rating to the Class D Notes (together, the “Notes”) issued by Sagard Credit Partners III-U RN (US) LP (the Issuer, Borrower, or Partnership). This published rating report summarizes KBRA's analysis of the Notes and KBRA’s ratings address the Issuer’s ability to fulfill its obligations on the ultimate interest payment and ultimate repayment of the Notes’ principal by their legal final maturity.

KBRA releases research examining loan modifications in the single-asset single borrower (SASB) commercial mortgage-backed securities (CMBS) sector. SASB activity is expected to remain an important part of the market, while upcoming loan maturities will continue to test refinancing availability and lender selectivity. Following KBRA’s prior SASB default and loss research, this report reviews 54 SASB CMBS 2.0 loans that were modified. The analysis focuses on what borrowers provided in exchange for additional time and whether the modifications included meaningful lender protections.

KBRA assigns preliminary ratings to six classes of notes issued by Veros Auto Receivables Trust 2026-2 (“VEROS 2026-2”), an auto loan ABS transaction.

KBRA assigns a long-term rating of AAA to The County of Cook, Illinois Sales Tax Revenue Bonds, Series 2026. KBRA additionally affirms the long-term rating of AAA for the County's outstanding Sales Tax Revenue Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to 12 classes of mortgage-backed notes from OBX 2026-NQM10 Trust, a $937.8 billion non-prime RMBS transaction. The underlying collateral, comprising 1,761 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 93.8% and 6.2% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 40.2%) or exempt (48.1%) 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 the Class A-F Notes, Class A Notes, Class B Notes, Class C Notes, and Class D Notes issued by PK ALIFT Loan Funding 9 LP, an aviation ABS transaction (PKAIR 2026-2). PKAIR 2026-2 represents the sixth aviation loan ABS securitization serviced by Apollo PK Air Management (CLO) LP (Apollo PK, or the Servicer), an affiliate of PK AirFinance (the Company). The PK AirFinance platform, which was founded in 1983, provides financing against aircraft and aircraft engines. The Company’s principal office is in New York with additional offices in London, Luxembourg, Singapore, Tokyo, and Toulouse. As of March 31, 2026, PK AirFinance has originated over $40 billion across 3,000 aviation loans since inception and has a managed portfolio of approximately $5.5 billion secured by approximately 330 aircraft and engines operated by 95 airlines in more than 45 countries. PK AirFinance will retain 100% of the equity of the subject transaction at closing.

KBRA releases the June 2026 issue of the KBRA CMBS Loss Compendium, providing updated loss estimates for all 394 KBRA-rated outstanding conduit transactions. The report, together with the accompanying spreadsheet, also includes data on lifetime realized losses for 22 conduits whose ratings have been withdrawn following payoffs.

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2026-CES7 (RCKT 2026-CES7).

KBRA assigns a long-term rating of AA- to the City of Austin, TX Senior Lien Special Tax Revenue Bonds, Series 2026A (Convention Center Project) and A+ to the City's Junior Lien Special Tax Revenue Bonds, Series 2026B (Convention Center Project). The rating Outlook is Stable.

KBRA assigns preliminary ratings to 13 classes of notes issued by Pagaya AI Debt Grantor Trust 2026-5 and Pagaya AI Debt Trust 2026-5, collectively “PAID 2026-5,” an unsecured consumer loan ABS transaction. PAID 2026-5 has initial hard credit enhancement levels ranging from 85.90% for the Class A-1 Notes to 3.44% for the Class F-2 Notes. Credit enhancement is comprised of overcollateralization, subordination, except for the Class F-2 Notes, cash reserve accounts funded at closing, and excess spread.

KBRA releases research analyzing the 21st Century ROAD to Housing Act, which became federal law on July 11. The act, which is intended to address the nation’s housing shortage and affordability, is expected to have a variety of impacts on the housing sector, including institutional single-family rentals (SFR). Earlier this year, KBRA discussed the potential implications of a prior version of the bill (see Institutional SFR Ownership Limits Could Slow Sector Growth).

KBRA releases research examining trends across the net asset value (NAV) landscape. Record KBRA-rated NAV issuance in 2025, followed by continued deal activity in 2026, underscores the evolution of NAV lending from a niche liquidity tool into an established component of fund finance. Broader sponsor and lender adoption has supported standardization, expanded market participation, and encouraged new structures that continue to adapt to shifting general partner needs while preserving credit discipline.

KBRA assigns a long-term rating of AAA to the Texas Transportation Commission State of Texas General Obligation Mobility Fund and Refunding Bonds, Series 2026-A and State of Texas General Obligation Mobility Fund Put Bonds, Series 2026-B (Multiannual Mode). KBRA additionally affirms the long-term rating of AAA for the Commission's State of Texas Highway Improvement General Obligation Bonds and State of Texas General Obligation Mobility Fund Bonds as well as the State's General Obligation Bonds. The rating Outlook for each obligation is Stable.

KBRA affirms its BBB issuer rating for SmartStop OP, L.P. KBRA also affirms its BBB rating for SmartStop OP, L.P.'s senior unsecured notes and assigns its BBB rating to SmartStop OP's outstanding CAD200 million senior unsecured notes due 2030. The Outlook for the issuer and all senior note ratings is Stable. Approximately $650 million of rated debt is affected by the KBRA rating actions. SmartStop OP, L.P. is the principal operating subsidiary of parent SmartStop Self Storage REIT, Inc. (NYSE: SMA or SmartStop).

KBRA releases an updated report tracking key metrics within the recurring revenue loan (RRL) securitization portfolio.

KBRA assigns preliminary ratings to FIDL 2026-RTL2, a $191.5 million revolving RMBS transaction issued by Fidelis Investors Mortgage Fund I, LP (Fidelis), as seller/sponsor, and backed by Residential Transition Loans (RTLs). The transaction is the sponsor's fourth rated securitization backed by RTL collateral, and KBRA’s first rated RTL transaction. The collateral consists entirely of RTLs purchased by Fidelis from either its affiliated originator, Unitas Funding LLC (18.2%), or independent third-party originators, the largest of which is Easy Street Capital, LLC, which originated 29.6% of the pool.

KBRA assigns preliminary ratings to 64 classes of mortgage pass-through notes from OBX 2026-AHC3 Trust, a prime agency-eligible RMBS transaction sponsored by Onslow Bay Financial LLC, that is fully originated and serviced by AmeriHome Mortgage Company, LLC (AmeriHome). This transaction is comprised of 589 residential mortgages with an aggregate unpaid principal balance (UPB) of approximately $336.3 million as of the July 1, 2026 cut-off date. The underlying collateral consists primarily of 30-year fixed-rate qualified mortgages (FRMs).

KBRA assigns a long-term rating of A with a Stable Outlook to the Municipality of Anchorage, AK 2026 Port Revenue Bonds, Series A (AMT) and outstanding parity Port Revenue Bonds.

KBRA assigns its A+ preliminary rating to QTS Thunder Managing Issuer, LLC’s proposed $3.6 billion senior secured obligations. The Outlook is Stable.

KBRA assigns preliminary ratings to 10 classes of mortgage pass-through certificates from ADMT 2026-NQM5, a $432.4 million non-prime RMBS transaction sponsored by Atlas A&D Opportunity Fund III LP, with the majority of the loans being originated by A&D Mortgage, LLC or one of its qualified correspondents. The underlying collateral, comprising 1,008 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. Borrowers in the subject pool possess a non-zero WA original credit score of 749 and exhibit notable equity in each mortgaged property, with a WA combined LTV (CLTV) ratio of 69.1%. Notably, 3.2% of the loans are second-lien loans.

KBRA assigns a senior unsecured debt rating of BBB with a Stable Outlook to Ripple Prime CIV US BD HoldCo LLC ("the company"), the intermediate holding company for its primary operating subsidiary, Hidden Road Partners CIV US LLC ("Ripple Prime US" or "the firm"). The firm is an SEC-registered broker-dealer, CFTC-registered futures commission merchant (FCM), a member of FINRA and SIPC, a clearing member of CME Group exchanges, and a member of the FICC Government Securities Division. KBRA previously assigned BBB issuer ratings to both the company and the firm on April 2, 2026.

KBRA assigns preliminary ratings to 102 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-9 (SEMT 2026-9), a $749.9 million prime RMBS transaction. The pool is comprised of 607 first-lien, fully amortizing fixed rate mortgages with mostly 30-year maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 779 and moderate borrower equity, with a WA original LTV and WA original CLTV of 72.8% each.

KBRA releases research examining a case study for the commercial mortgage-backed securities (CMBS) sector, which focuses on servicer holdbacks and their impact on CMBS waterfalls. A servicer holdback is an amount withheld by the master servicer or special servicer from proceeds that would otherwise be distributed to CMBS certificateholders. Holdbacks are intended to ensure funds are available to pay future servicing costs, anticipated expenses, or unresolved obligations typically associated with a loan during a workout, foreclosure, real estate owned (REO) disposition, or loan payoff. While any unused holdback funds are ultimately returned to the trust, holdbacks may temporarily delay cash distributions and, in certain circumstances, produce outcomes that market participants may not anticipate. This KBRA report examines one such case involving the holdback in the WFCM 2015-C26 transaction near its termination.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM8 (NRMLT 2026-NQM8), a $480.2 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 primarily originated by NewRez LLC (51.3%) and Champions LLC (20.3%). In addition, all loans will be serviced by NewRez LLC.

KBRA assigns preliminary ratings to 38 classes of mortgage pass-through certificates from Provident Funding Mortgage Trust 2026-3 (PFMT 2026-3).

KBRA assigns preliminary ratings to one class of notes (the Series 2026-1 Notes) from Lohrasp Enterprise II LLC, a hyperscale data center ABS transaction. The Series 2026-1 Notes represent the first ABS-style issuance from Lohrasp Enterprise II LLC.

KBRA releases research previewing the 2026 Atlantic hurricane season (June 1 to November 30). While the season is forecast to be below normal, it does not eliminate catastrophe risk. Even a quiet season can produce a single storm that generates outsized insured losses if it strikes a high-value, coastal market. Insurers enter this season with stronger capital, improved underwriting results, and broader reinsurance availability than in 2022-23. At the same time, rate pressure, loss-cost inflation, geographic concentration, attachment point discipline, and reinsurance counterparty and exhaustion risk can still pressure key financial metrics.

KBRA announces the assignment of preliminary ratings to seven classes of LBA 2026-LBA6, a CMBS single-borrower securitization. The collateral for the transaction is a $950 million 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 interests in 39 industrial assets (98.1% of ALA), one office property (1.7%) and one land parcel (0.2%), which collectively total 8.3 million sf. The properties are located in 10 states, the five largest of which are California (14 properties, 41.2% of ALA), Illinois (eight, 13.0%), Florida (two, 10.1%), New Jersey (four, 9.3%), and Washington (five, 7.0%). As of June 2026, the portfolio was 84.8% leased to over 65 unique tenants.

KBRA assigns preliminary ratings to 44 classes of mortgage-backed notes from PMT Loan Trust 2026-CNF6 (PMTLT 2026-CNF6), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-CNF6 comprises 622 agency-eligible, conforming mortgage loans with an aggregate stated principal balance of approximately $337.0 million as of the July 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 73.1%, a WA original combined LTV (CLTV) of 74.1% and a WA original credit score of 772.

KBRA is assigning preliminary ratings to the Series 2026-1 Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2026-1 Notes) from Adams Outdoor Advertising Limited Partnership, (the Issuer), an asset-backed securitization that is primarily collateralized by billboards and revenue generated from the related contracts. The rating actions follow KBRA’s analysis which indicates that existing credit enhancement for the notes and cash flows are sufficient to support the ratings following the issuance of the Series 2026- 1.

KBRA assigns preliminary ratings to five classes of notes issued by American Credit Acceptance Receivables Trust 2026-3 (“ACAR 2026-3”), an ABS transaction collateralized by a pool of auto loans.

KBRA assigns preliminary ratings to five classes of notes issued by GLS Auto Select Receivables Issuer Trust 2026-3 ("GSAR 2026-3"), an auto loan ABS transaction.

KBRA assigns preliminary ratings to seven classes of notes issued by Westlake Automobile Receivables Trust 2026-P2 (“WLAKE 2026-P2”), an asset-backed securitization collateralized by a pool of prime auto loans. WLAKE 2026-P2 will issue seven classes of notes totaling $500.00 million. The preliminary ratings reflect initial credit enhancement of 8.50% for the Class A notes (consisting of Class A-1, Class A-2, Class A-3, and Class A-4), through 1.25% for the Class D notes. Credit enhancement will consist of subordination (except for the Class D notes), overcollateralization, a reserve account and excess spread.

KBRA assigns a BBB+ preliminary long term credit rating for up to $100 million of twenty-year prescribed capital notes (Notes) to be issued by Knighthead Annuity & Life Assurance Company (KHAL). The Outlook for the preliminary rating is Stable.

KBRA assigns preliminary ratings to 8 classes of mortgage pass-through certificates from Citigroup Mortgage Loan Trust 2026-LTV1 (CMLTI 2026-LTV1), a prime high LTV residential mortgage-backed securities (RMBS) transaction issued by Citigroup through its CMLTI shelf and comprises 429 residential mortgages with an aggregate unpaid principal balance (UPB) of approximately $378.3 million as of the June 1, 2026 cut-off date. The underlying collateral consists mostly of 30-year fixed-rate mortgages (FRMs) and includes both non-agency (78.8%) and agency-eligible (21.2%) loans. 33.0% of the loans were originated by Rocket Mortgage, LLC and 66.8% of the loans will be serviced by Fay Servicing, LLC. CMLTI 2026-LTV1 utilizes a Pro Rata/Sequential Hybrid structure.

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the June 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS declined 13 basis points (bps) to 7.5% in June from 7.7% in May, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) declined 14 bps.

KBRA announces the assignment of preliminary ratings to two classes of EQT 2026-IND1, a CMBS single-borrower securitization. The collateral for the transaction is a $1.0 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 interests in 50 industrial assets. In total, the portfolio contains 16.0 million sf and the properties are located across 13 states, the five largest of which are Georgia (14 properties, 28.1% of ALA), Indiana (seven, 15.7%), Illinois (four, 8.7%), Missouri (seven, 8.2%), and Pennsylvania (three, 8.0%). As of July 2026, the portfolio was 91.7% leased to over 60 unique tenants.

KBRA assigns an A rating to the Class A Notes, a BBB rating to the Class B Notes, and a BB rating to the Class C Notes (together, the Notes) issued by NSDL RN Feeder (Canada) LP (the Issuer or the Feeder). This published rating report summarizes KBRA's analysis of the Notes and KBRA’s ratings address the Issuer’s ability to fulfill its obligations on the ultimate interest payment and ultimate repayment of the Notes’ principal by their legal final maturity.

KBRA assigns a rating of BBB to Morgan Stanley Direct Lending Fund's (NYSE: MSDL or "the company") $350 million, 6.10% senior unsecured notes due July 15, 2031. The rating Outlook is Stable.

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from Bayview Opportunity Master Fund VII Trust 2026-CES1 (BVCES 2026-1).

KBRA releases research that compares the lifetime stability of KBRA’s private and public ratings across our ratings portfolio, including separate analyses of our corporate, financial, and government (CFG) ratings and structured finance (SF) ratings portfolios. As private credit markets have continued to grow, investors and market participants have increasingly focused on the performance of private ratings relative to ratings disseminated publicly.

KBRA assigns a long-term rating of AA to the Magnolia Independent School District, TX Series 2026 Unlimited Tax School Building Bonds. Concurrently, KBRA assigns a long-term rating of AA to outstanding parity lien Unlimited Tax School Building Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to three classes of notes issued by MC Aviation 2026-1 Limited and MC Aviation 2026-1 LLC (MCAV 2026-1), an aviation ABS transaction. MCAV 2026-1 represents the inaugural aviation ABS transaction serviced by AIP Capital Limited (AIP, the Servicer, or the Company). As of Q1 2026, the Company has 133 aircraft assets under management valued at approximately $7.5 billion, with approximately $3.2 billion in non-ABS debt facilities raised to-date.

KBRA assigns preliminary ratings to 16 classes of notes issued by Research-Driven Pagaya Motor Asset Trust 2026-4 and Research-Driven Pagaya Motor Trust 2026-4 (collectively “RPM 2026-4”), an auto loan ABS transaction. RPM 2026-4 has initial credit enhancement levels of 97.00% for the Class A-1 notes to 5.95% for the Class XS notes. Credit enhancement is comprised of overcollateralization (“O/C”), subordination of junior note classes (except for the Class E-2 notes), reserve accounts (including the capitalized interest amount and the Class XS Reserve Account) funded at closing, and excess spread.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from CROSS 2026-NQM8 Mortgage Trust, an RMBS transaction issued under the CROSS shelf, where Hildene-CCC Loan Acquisition II, LLC and CrossCountry Capital are the co-sponsors. This $585.8 million transaction is collateralized by a pool of 1,179 residential mortgages, including a meaningful concentration of collateral that KBRA considers to be “non-prime” (72.6%), with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 81.4% and 18.6% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM; 58.2%) or exempt (40.4%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA releases its recap of the Proximo Congress 2026: U.S. Energy & Infrastructure Finance conference. KBRA, an event partner, summarizes key themes from this year’s conference, including rising power demand, data center energy constraints, and the continued evolution of public-private infrastructure delivery.

KBRA is issuing this statement in the interest of transparency to our clients, investors, issuers, and other market participants regarding a cybersecurity incident recently disclosed by the National Association of Insurance Commissioners (NAIC).

On June 24, 2026, Fitzgerald, GA-based Colony Bancorp, Inc. (NYSE: CBAN) (“Colony”), parent company of Colony Bank, and Florence, SC-based First Reliance Bancshares, Inc. (OTCQX: FSRL) (“First Reliance”), parent company of First Reliance Bank, jointly announced that they had entered into a definitive merger agreement pursuant to which First Reliance Bancshares, Inc. would merger with and into Colony Bancorp, Inc., and First Reliance Bank would merger with and into Colony Bank. The transaction, valued at $163 million (P/TBV: 1.6x), consists of 80% stock and 20% cash consideration and is expected to close in 4Q26, subject to regulatory and shareholder approval.

KBRA assigns a long-term rating of AAA to the County of Chesterfield, VA General Obligation Public Improvement Bonds, Series 2026 and assigns a long-term rating of AA+ to the Economic Development Authority of Chesterfield County, VA Revenue Bonds, Series 2026 and assigns a AA+ rating to outstanding appropriation debt. KBRA additionally affirms the long-term rating of AAA on outstanding General Obligation Bonds. All ratings with a Stable Outlook.

KBRA assigns a long-term rating of AA to the Alaska Municipal Bond Bank Authority General Obligation and Refunding Bonds, 2026 Series Two and affirms the long-term rating of AA for the Authority's outstanding General Obligation Bonds.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes issued by PRKCM 2026-AFC4 Trust, a $344.0 million non-prime RMBS transaction. The underlying collateral consists of 835 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) representing 95.9% and 4.1% 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 announces the assignment of preliminary ratings to three classes of BX 2026-ORBT, a CMBS single-borrower securitization. The collateral for the transaction is a $1.4 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 84 industrial assets. In total, the portfolio contains 13.1 million sf and the properties are located across 12 states, the five largest of which are Florida (20 properties, 24.2% of ALA), Pennsylvania (seven, 13.4%), Virginia (13, 12.9%), Illinois (nine, 10.3%), and Maryland (four, 9.4%). As of June 2026, the portfolio was 91.4% leased to over 165 unique tenants.

KBRA assigns preliminary ratings to 13 classes of mortgage-backed notes from OBX 2026-NQM9 Trust, a $1.01 billion non-prime RMBS transaction. The underlying collateral, comprising 1,841 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 92.8% and 7.2% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 42.7%) or exempt (47.5%) 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 five classes of notes issued by Foundation Finance Trust 2026-1 (“FFIN 2026-1”), an asset-backed securitization collateralized by unsecured consumer loans primarily used for home improvements.

KBRA assigns preliminary ratings to 28 classes of mortgage pass-through certificates from Morgan Stanley Residential Mortgage Loan Trust 2026-INV2 (MSRM 2026-INV2). The transaction consists of 906 fixed-rate mortgages (FRMs) with an aggregate principal balance of $360.9 million as of the June 1, 2026 cut-off date. The underlying pool consists of loans that are collateralized by investment properties (82.8%) and second homes (17.2%).

KBRA assigns preliminary ratings to ten classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2026-3 (AOMT 2026-3), a $279.6 million non-prime RMBS transaction. The underlying collateral, comprised of 589 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. All the loans are either classified as non-qualified mortgages (Non-QM) (43.8%) or exempt (56.2%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. Angel Oak Mortgage Solutions is the largest originator, comprising 23.1% of the pool, with no other originator comprising more than 10% of the collateral.

KBRA assigns preliminary ratings to two classes of notes issued by MAPS 2026-2 Trust (MAPS 2026-2), an aviation ABS transaction. MAPS 2026-2 represents the second aviation ABS transaction serviced by Perseus Asset Management Limited (Perseus, the Servicer, or the Company). It is the fifth aviation lease ABS issued under Apollo’s aviation finance platform, following three prior transactions completed by Merx Aviation (Merx) between 2018 and 2021, and the inaugural transaction completed by Perseus earlier in 2026. At closing, the equity position in MAPS 2026-2 will be retained by a co-investment partnership between Perseus, Oaktree Capital Management and HPS Investment Partners.

KBRA assigns preliminary ratings to four classes of notes issued by Upstart Securitization Trust 2026-3 (“UPST 2026-3”), a $320.005 million consumer loan ABS securitization collateralized by unsecured consumer loans and auto secured personal loans. UPST 2026-3 represents the 51st ABS securitization collateralized by loans originated through the online platform operated by Upstart Network, Inc. (“Upstart” or the “Company”), a 100% owned subsidiary of the publicly traded entity Upstart Holdings, Inc. (NASDAQ: UPST).

KBRA assigns a BBB long-term credit rating (LTCR) to Universal Insurance Holdings, Inc.'s (UVE’s) $100 million, 7.75% Senior Unsecured Notes (Notes) due 2031, with a Stable outlook. UVE intends to use the net proceeds from the offering for general corporate purposes, including redemption of its existing $100 million 5.625% Senior Unsecured Notes due November 30, 2026, extending UVE’s debt maturity profile to 2031. The Notes are senior unsecured obligations of UVE and rank equally with the company’s current and future senior unsecured indebtedness, while remaining structurally subordinated to policyholder obligations and other liabilities of UVE’s subsidiaries.

KBRA assigns preliminary ratings to 6 classes of mortgage-backed certificates from GS Mortgage-Backed Securities Trust 2026-DSC2 (GSMBS 2026-DSC2), a $304.1 million RMBS transaction sponsored by Goldman Sachs Mortgage Company (Goldman Sachs) solely backed by collateral underwritten to debt-service coverage ratio (DSCR) guidelines. The underlying pool ($304.1 million), comprising 1,373 rental property mortgages as of the June 1, 2026 cut-off date. The mortgage loans are seasoned approximately 4 months with United Wholesale Mortgage, LLC (34.2%) as the largest contributing originator. The collateral is characterized mostly by fully amortizing, fixed-rate mortgages (FRMs) with 30-year (98.3%) terms. All the loans in the pool were categorized as exempt from the ATR/QM rule due to being originated for business purposes.

KBRA assigns preliminary ratings to the Series 2026-1 Class A-1-L Notes, Class A-1-V Notes, Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2026-1 Notes) from FirstLight Issuer, LLC (the Issuer), a communications infrastructure securitization that is primarily collateralized by communication system assets and related contracts.

KBRA releases research highlighting the statutory framework and legal protections for California School District general obligation bondholders.

KBRA releases research examining re-leasing risk in artificial intelligence (AI) compute financings involving graphic processing units (GPU), tensor processing units (TPU), and related high-performance computing infrastructure. These transactions sit at the intersection of data center and equipment finance, with revenue tied to both the underlying site and the economic competitiveness of the compute capacity.