KBRA assigns preliminary ratings to Gracie Point International Funding 2021-1, series 2021-1
NEW YORK–(BUSINESS WIRE) – The Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four categories of Notes issued by Gracie Point International Funding 2021-1, Series 2021-1 (“Gracie Point”). This is the first insurance premium financing securitization for Gracie Point, LLC in 2021, the fifth KBRA-rated securitization and the seventh overall.
Gracie Point, established in February 2010, specializes in the financing of premium payments for life insurance policies. Gracie Point clients are high net worth individuals who purchase or have purchased life insurance for estate planning or business purposes.
This transaction is secured by interests in insurance premium finance loans (each, a “premium finance loan”) made by a premium finance lender (“premium finance lender”) to a borrower of eligible financing (“eligible financing borrower”). The Premium Finance lender is a 100% subsidiary of Gracie Point. Each premium finance loan will be at least 100% guaranteed by a combination of (i) a life insurance policy issued by an eligible life insurance company (each, a “qualifying life insurance company”) having a minimum cash value, (ii) in cash, if necessary, and (iii) a letter of credit from an eligible letter of credit provider, if necessary. Each Eligible Financial Borrower for a Premium Financing Loan is required to reserve a period of recovery of accrued and unpaid interest plus the period of redemption (one or six months) of the term interest on this Premium Financing Loan.
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Further information on key credit considerations, sensitivity analyzes that take into account the factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be found in the full rating report mentioned above.
A description of all substantially significant sources that were used in preparing the credit rating and information on the methodology (s) (including significant models and sensitivity analyzes of key relevant rating assumptions, where applicable applicable) used to determine the credit rating are available in the Information Disclosure Form (s) located here.
Here you will find information about the meaning of each rating category.
Additional information relating to this rating action is available in the information disclosure form (s) referenced above. Additional information regarding KBRA’s policies, methodologies, rating scales and information is available at www.kbra.com.
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