NEW YORK (October 11, 2012) — Kroll Bond Rating Agency (KBRA) announces the release of its methodology for rating U.S. timeshare ABS transactions.
The report, U.S. Timeshare ABS Rating Methodology, provides insight into KBRA’s analytic approach for rating timeshare ABS securitizations. The methodology incorporates an analysis of the quality and expected performance of the underlying collateral, the originator and servicer’s business model and operational strength and the transaction terms.
KBRA’s approach emphasizes a focus on prevailing industry and credit trends, the integration of originator and servicer evaluations into the transaction analysis and the timely post-issuance surveillance of pool performance. KBRA also reviews the key features associated with timeshare ABS in comparison to other consumer ABS sectors which include: the importance of originator/servicer in the transaction, the optional repurchase of defaulted loans by the originator and the relatively small loan monthly payments that enable borrowers to retain their timeshare interests despite challenging economic conditions.
The report, U.S Timeshare ABS Rating Methodology, can be found at www.krollbondratings.com.
About Kroll Bond Rating Agency
KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. 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).
Source: Kroll Bond Rating Agency