Honor Finance’s 2016 securitization has been withdrawn from Kroll Bond Rating Agency’s surveillance after being paid in full, the rating agency announced this week.
The transaction had suffered two downgrades since July 2018, a month before the defunct company transferred its servicing to Westlake Portfolio Management. On June 17, servicer Westlake Portfolio Management exercised its right to redeem the notes in full, paying down the remaining Class B and C tranches when the outstanding balance of loans fell below 20% of their original amounts, the press release said.
The B and C notes, which had been downgraded in April, had balances of $7.2 million and $8.8 million, respectively, at the time. Based on an April 25 report, cumulative net losses in the tranches had increased to 31.2% from 29.4%; the rating agency had predicted the Class C notes would incur as much as an $8 million loss on the $8.8 million principal.
KBRA withdrew its rating on the class A tranche in December 2018 after the notes were paid in full, according to past agency reports.