KBRA releases an updated report tracking key metrics within recurring revenue loan (RRL) securitizations.

This report, an update to our Q3 analysis, continues to track and present several key metrics in a dashboard format, sourced from quarterly collateral loan tapes provided by the issuers of KBRA-rated RRL asset-backed securities (ABS). This update incorporates collateral tapes dated as of December 2025.

Key Weighted Average Statistics

• The weighted average (WA) annual recurring revenue (ARR) on an aggregate portfolio basis for the dashboard population is $179.3 million, down 1.9% quarter-over-quarter (QoQ) and 9.1% year-over-year (YoY). The level remains above the historical average of $174.9 million.
• The debt-to-recurring revenue ratio increased 0.5% QoQ to 1.6x but is down 14.7% YoY. The average loan-to-value ratio is up 1.7% QoQ and 2.3% YoY to 29.8%.
• Balance sheet cash is $37 million, which is down 13.5% QoQ and 12.2% YoY and remains below the historical average of $48.5 million. Most of the QoQ decline in cash can be attributed to portfolio churn from loan conversions and in connection with RRL ABS transactions that were reset in Q4 2025.
• Liquidity cushion has decreased 0.2% QoQ to $58.1 million but is up 10.6% YoY and is still above the historical average of $55.9 million.
• The all-in rate for the loans in the dashboard is 9.31%, down QoQ and 1.4% lower YoY, as rate cuts and spread compression continues to show up in quarterly financials.
• Capitalized interest/payment-in-kind (PIK) as a percentage of total portfolio principal was 2.3%, down 0.1% QoQ and 0.4% YoY. Some 31.8% of the RRLs in the dashboard currently report a PIK balance, which is slightly lower QoQ.
• Managers have identified four new borrowers that have flipped from ARR-based covenants to EBITDA during Q4 2025 (three in prior period).
• No defaults were reported for the period.

Click here to view the report.

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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.

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