KBRA assigns a preliminary rating to four classes of notes issued by Gracie Point International Funding 2023-1, LLC, Series 2023-1.

Gracie Point, formed in February 2010, is in the business of financing life insurance policy premium payments. Gracie Point’s clients are high net worth individuals, procuring or having procured life insurance for estate planning or business purposes.

This transaction is secured by a special unit of beneficial ownership interest (“SUBI”) of Gracie Point Collateral Trust (the “Collateral Trust”). The Collateral Trust holds participations in premium finance loans (the “Premium Finance Loans”) and a portion or all of the beneficial interest in certain participations held by the Collateral Trust will be allocated to the SUBI held by the Issuer. The Premium Finance Loans are made by a premium finance lender (“Premium Finance Lender”) to an eligible finance borrower (“Eligible Finance Borrower” or “Borrower”). The Premium Finance Lender is a wholly-owned subsidiary of Gracie Point. Each Premium Finance Loan will be at least 100% collateralized by a combination of (i) a life insurance policy issued by an eligible life insurance carrier (each, an “Eligible Life Insurance Company”) having a minimum cash surrender value (“CSV”), (ii) cash, if needed and (iii) a letter of credit from an eligible letter of credit provider, if needed. Each Eligible Finance Borrower of a Premium Finance Loan is required to reserve one collection period of accrued and unpaid interest plus the surrender period (typically six months) of forward interest on such Premium Finance Loan.

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Related Publications

• General Global Rating Methodology for Asset-Backed Securities
• 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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