KBRA assigns preliminary ratings to five classes of credit linked notes issued by BVCLN 2026-CRD1, LLC (Issuer or Protection Seller), a synthetic risk transfer transaction (SRT) referencing a diversified portfolio of revolving corporate credit facilities to investment grade-rated borrowers.

The Issuer executed a credit default swap (CDS) transaction with SMBC Capital Markets Inc. (SMCMI or Protection Buyer) to provide credit protection for certain defined credit events. The underlying CDS transaction features a three-year replenishment period (subject to early cut-off under certain circumstances), during which time the Protection Buyer has the right to add additional reference obligations to the reference portfolio subject to compliance with the CDS transaction’s eligibility criteria and portfolio guidelines.

As of the effective date of the underlying CDS transaction, the reference portfolio consists of 156 reference obligations (revolving credit facilities) to 93 reference entities (parent corporations) totaling $4.22 billion.

The ratings on the Class A, B, C, D, and E Notes address ultimate payment of interest and principal by the applicable stated maturity date.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• Structured Credit: Structured Credit Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty 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), 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: 1014606

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