KBRA Assigns Preliminary Ratings to Financial Institution Note Securitization 2019-1 Ltd

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes (the “Notes”) issued by Financial Institution Note Securitization 2019-1 Ltd (“FINS 2019-1”).

FINS 2019-1 is a cash flow CDO that will be fully ramped at closing. The preliminary ratings reflect the initial credit enhancement levels, coverage tests including overcollateralization ratio and interest coverage tests for all Notes, and excess spread.

The collateral in FINS 2019-1 mainly consists of subordinated debt issued by community and regional banks and their holding companies along with trust preferred security and senior unsecured debt. The obligors in the portfolio have a K-WARF of 479, which represents a weighted average portfolio assessment of approximately BBB-. The total portfolio par amount is $250.45 million with exposures to 45 banks. KBRA has public ratings on three of the banks.

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 $7.3 billion of assets across a diverse group of alternative asset strategies for managed funds and separately managed accounts and $3.1 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.

1 Modeled interest rates. Liabilities will flip to floating on 07/20/2024 (Interest Rate Conversion Date)

2 3mL = Three-month Libor

KBRA analyzed this transaction using the Global Structured Credit Rating Methodology published on August 7, 2018 and the Global Structured Finance Counterparty Methodology published on August 8, 2018 and incorporated the Global Bank and Bank Holding Company Rating Methodology for analyzing the underlying collateral obligations.

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

• Financial Institution Note Securitization 2019-1 Ltd Pre-Sale Report
• Structured Things: The Upside-Down Yield Curves
• Return of the TruPS – Overview of New Issue Bank and Insurance CDOs
• Global Structured Credit Rating Methodology

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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. KBRA is also 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.

Contacts

Analytical:

George Lyons, CFA, Senior Director

(646) 731-3314

glyons@kbra.com

Sean Malone, CFA, Director

(646) 731-2436

smalone@kbra.com

Jason Szelc, Director

(301) 969-3174

jszelc@kbra.com

Steven Zheng, Analyst

(646) 731-3379

szheng@kbra.com