Kroll Affirms and Upgrades Velocity Commercial Capital Securitization Ratings
VEL•Kroll Bond Rating Agency affirmed ratings on Velocity Commercial Capital’s securitization notes and upgraded one tranche, reflecting stronger collateral performance. The upgrade may reduce financing costs for the company’s asset-backed debt program.
1. Rating Action Details
Kroll Bond Rating Agency affirmed ratings on all outstanding notes in Velocity Commercial Capital’s securitization program and upgraded one tranche to a higher rating level. The action reflects improved collateral performance, stronger repayment metrics and lower expected losses within the asset pool.
2. Funding Cost Implications
The upgraded rating is likely to lower the company’s borrowing costs in future asset-backed issuances by reducing required credit spreads. Enhanced investor confidence in the securitizations could support larger transaction volumes and greater liquidity for Velocity’s debt program.
