KBRA Assigns Preliminary Ratings to BHG Securitization Trust 2022-A

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NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to five classes of bonds issued by BHG Securitization Trust 2022-A (“BHG 2022-A”), an asset-backed securitization secured by a loan pool to small businesses (“Commercial Loans” and unsecured consumer loans (“Consumer Loans”).

BHG 2022-A will issue five classes of notes totaling $400.0 million. Preliminary ratings reflect initial levels of credit enhancement ranging from 42.70% for Class A Notes to 0.50% for Class E Notes.

BHG 2022-A represents ABS’s fourth securitization for Bankers Healthcare Group, LLC (“BHG” or the “Company”). BHG was founded in 2001 and offers business loans and consumer loans primarily to high-income blue chip professionals. Pinnacle Financial Partners, Inc., a holding company headquartered in Tennessee, and its subsidiary Pinnacle Bank, a Tennessee state-chartered bank, together own 49% of the company. With headquarters in Davie, Florida, and financial headquarters in Syracuse, New York, BHG has provided more than $10 billion in financing to more than 95,000 borrowers since its inception.

KBRA has applied its general global rating methodology for asset-backed securities and ABS global rating methodology for consumer loans, as well as its global structured financial counterparty methodology and its global ESG rating methodology as part of its analysis of the collateral pool underlying the transaction and the proposed capital structure. KBRA reviewed its operational review of BHG, which was completed in January 2020, as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.

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

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Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine the credit rating are available in the information disclosure form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency 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.

Analytical Contacts

Romil Chouhan, CFA, Director (Senior Analyst)

+1 (646) 731-1309

[email protected]

Maxime Berger, Director

+1 (646) 731-1260

[email protected]

Michael Pettigrew, Principal Analyst

+1 (646) 731-1208

[email protected]

Eric Neglia, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2456

[email protected]

Business Development Contact Information

Ted Burbage, General Manager

+1 (646) 731-3325

[email protected]

Source: Kroll bond rating agency

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