KBRA Releases Research – Recurring Revenue Loan Metrics Dashboard: Q3 2024

KBRA releases an updated report that tracks several reported metrics within recurring revenue loan (RRL) securitizations.

In this report, an update to our Q2 analysis, KBRA continues to track several key metrics sourced from quarterly collateral loan tapes provided by the issuers of KBRA-rated RRL securitizations, in dashboard form. Changes in such metrics can provide an indication of the general health and credit quality of the portfolios. The Q2 analysis used collateral tapes dated through June 2024, and for this update we utilized reports dated through September 2024 (for more on scope and metrics definitions, see Appendix 1 in the report).

For the first time in nearly three years, annualized recurring revenue is down quarter over-quarter (QoQ), but remains well above the historical average. Other key metrics, including cash and liquidity, have also fallen but remain in line with or higher than historical averages. Despite these trends, KBRA has observed more underlying recurring revenue borrowers converting from recurring revenue covenants to cash- or EBITDA-based covenants, which we view as an important proof of concept for the securitizations.

Click here to view the report.

Related Publications

• 2025 Structured Credit Sector Outlook: Favorable Currents for Sustained Flow
• Private Credit: Q3 2024 Middle Market Borrower Surveillance Compendium—The End is Near?
• Private Credit: Rate Cuts Will Help Most but Not All Borrowers
• Structured Credit Trend Watch: The First Cut Is Behind Us
• Recurring Revenue Loan Metrics Dashboard: August 2024 Update
• Private Credit: Khoros’ Potential Default Sprinkled Across Private Credit
• Private Credit: Impact of Pluralsight’s Potential Restructuring Will Be Widely Dispersed and No Effect on Ratings Expected
• Navigating U.S. CLO Tail Risk

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1007077

View source version on businesswire.com: https://www.businesswire.com/news/home/20241202439419/en/