KBRA Assigns Preliminary Ratings to HTS Fund I LLC

NEW YORK–(BUSINESS WIRE)–#KBRA–Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to one class of notes in HTS Fund I LLC, a Texas property tax loan ABS transaction.

This transaction represents the inaugural term securitization for Home Tax Solutions (“HTS” or the “Company”). The initial collateral pool is composed of 3,892 tax loans, located across 133 counties within the State of Texas with an initial redemptive value of approximately $92.0 million. Texas tax loans are loans extended by providers, such as HTS, to Texas property owners for the payment of their delinquent property taxes. The underlying tax loan contracts and payment agreements are secured by tax lien certificates issued by taxing units within the State of Texas.

The transaction features a new loan account and a subsequent loan account to purchase new and subsequent loans during the reinvestment period of twenty-four (24) months, subject to certain eligibility criteria, with $8.8 million deposited into each account at closing. The transaction also includes a subsequent loan account to purchase subsequent tax loans on properties related to either tax loans in the initial pool or to tax loans purchased from the new loan account.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

• Property Tax Lien ABS Rating Methodology
• 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.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. 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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Contacts

Analytical Contacts

Usman Khan, Director (Lead Analyst)

+1 (646) 731-2488
usman.khan@kbra.com

Ali Pasha, Senior Analyst
+1 (646) 731-1299
ali.pasha@kbra.com

Edward L. Napoli, Director
+1 (646) 731-1284
edward.napoli@kbra.com

Rosemary Kelley, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2337
rosemary.kelley@kbra.com

Business Development Contact

Ted Burbage, Managing Director

+1 (646) 731-3325
ted.burbage@kbra.com