KBRA assigns a preliminary rating to a note class of FNA VII, LLC, a property tax lien ABS transaction.

This transaction represents the fifth public term securitization for First National Holdings, LLC. On the closing date, the company will own all of the membership interests of the Issuer. The initial collateral pool is comprised of property tax lien assets from municipalities within the states of Arizona, California, Florida, Illinois, Indiana, Maryland, New Jersey, New York, Nevada, South Carolina, and Texas. The tax liens in the aforementioned states have been purchased by special purpose tax lien holding subsidiaries of the Company that are contributed by the Company to the Issuer at closing.

The initial collateral in the transaction includes approximately $106.8 million of property tax liens. The transaction also features two different reinvestment accounts (the “New Tax Lien Asset Account” and the “Subsequent Tax Lien Asset Account”) with a total of $39.5 million deposited at closing ($33.0 million in the New Tax Lien Account and $6.5 million in the Subsequent Tax Lien Account).

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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. 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.

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