NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA assigns preliminary ratings to two classes of notes issued by SUA 2025-1 LLC (SUA 2025-1), a $133.3 million tri-servicer property tax lien securitization between American Tax Lien (the Master Servicer), LLC, Sower Tax Lien Fund I, LLC (Sower), and US Assets, LLC (US Assets and, each, an Originator). SUA 2025-1 represents each of the Originator’s first tax lien ABS securitization. Proceeds from the Notes will be used to acquire a portfolio of 16,751 property tax lien assets from municipalities within eight states, including Illinois (29.5%), Nebraska (25.8%), and Louisiana (20.0%), with a redemptive value of approximately $114.8 million (the Initial Tax Liens) and a weighted average original lien rate of 11.6%.
The Master Servicer was originally founded in 2013 and is a specialty finance holding company that purchases real estate tax liens from government entities, mainly in Cook County, IL. Sower and US Assets were each founded in 1999 and purchase real estate tax liens from government entities across the Midwest and South.
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Methodologies
- ABS: Property Tax Lien ABS Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
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Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
Doc ID: 1009427
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