Structured Credit Analyst

KBRA releases updates to its Investment Fund Debt Global Rating Methodology. NEW YORK-(BUSINESS WIRE)-#creditratingagency-KBRA releases its updated Investment Fund Debt Global Rating Methodology describing KBRA's approach to rating debt issued by investment funds or secured by investment fund assets. This methodology supersedes the prior version dated March 12, 2020. The update includes the addition of two appendices to enhance transparency regarding the application of the methodology. Appendix A explains how KBRA uses guideline quantitative determinant weightings to facilitate ratings consistency across similar fund debt transactions. Appendix B illustrates how KBRA applies its rating methodology to a hypothetical feeder fund that issues debt and equity to invest in a direct lending master fund. The update also includes a change to increase the weighting of the cash flow determinate typically used when rating notes issued by feeder funds into direct lending funds. KBRA has rated fund debt transactions since 2015, across multiple vintages and structural configurations. Through ongoing surveillance, KBRA has evaluated performance across multiple economic and interest rate environments and taken approximately 3,000 rating actions, reflecting transaction-specific performance, portfolio evolution, structural protections, and broader macroeconomic conditions. This broad experience informs KBRA's assessment of asset quality, cash flow durability, recoveries, and manager execution. Consistent with this experience, KBRA has determined that credit performance in transactions backed by direct lending corporate loans are influenced by the durability and timing of underlying cash flows, particularly under stress scenarios. Accordingly, KBRA has increased the typical cash flow determinant weighting for certain transactions. KBRA expects this update will impact less than 5% of approximately 1,300 outstanding ratings assigned under the Investment Fund Debt Global Rating Methodology, and the impact is expected to generally be positive within a two-notch range. About KBRA KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. Doc ID: 1013881 Eric Neglia, Senior Managing Director, Global Head of Corporate Portfolio Finance +1 646-731-2456 [email protected] Thomas Speller, Senior Managing Director, Global Co-Head of Funds Debt Ratings +44 20 8148 1025 [email protected] Ryon Aguirre, Senior Managing Director, Global Co-Head of Funds Debt Ratings +1 646-731-1239 [email protected] William Cox, Chief Rating Officer +1 646-731-2472 [email protected] Business Development Contacts Jason Lilien, Senior Managing Director +1 646-731-2442 [email protected]

KBRA assigns preliminary ratings to Sequoia Mortgage Trust 2026-4 (SEMT 2026-4). NEW YORK-(BUSINESS WIRE)-#creditratingagency-KBRA assigns preliminary ratings to 102 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-4 (SEMT 2026-4), a $742.1 million prime RMBS transaction. The pool is comprised of 598 first-lien, fully amortizing fixed rate mortgages with mostly 30-year maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 778 and moderate borrower equity, with a WA original LTV of 69.9% and WA original CLTV of 69.9%. KBRA's rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction's payment structure, reviews of key transaction parties and an assessment of the transaction's legal structure and documentation. This analysis is further described in its U.S. RMBS Rating Methodology. Related Publications Methodologies 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. 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1013883 Analytical Contacts Chris Deasy, Senior Director (Lead Analyst) +1 646-731-1311 [email protected] Patrick Gervais, Senior Managing Director (Rating Committee Chair) +1 646-731-2426 [email protected] Business Development Contact

KBRA releases research - electric vehicle residual values in Europe: on the road to greater stability? DUBLIN-(BUSINESS WIRE)-#creditratingagency-KBRA releases research examining recent trends in electric vehicle (EV) residual values across Europe and the implications for auto asset-backed securities (ABS). Following a sharp repricing after pandemic-era supply constraints unwound, recent data indicate that the pace of EV residual-value declines has moderated. The report also highlights how EV adoption trends, charging-infrastructure expansion, and evolving policy developments across the EU and UK may influence residual-value behaviour. While moderating price declines may improve the assessment of residual-value risk in auto ABS transactions, KBRA notes that outcomes remain sensitive to transaction structure, collateral composition, and jurisdictional dynamics. Recent Publications About KBRA KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. Doc ID: 1013923 Media Contact Business Development Contacts Miten Amin, Managing Director +44 20 8148 1002 [email protected]