Press Release|Structured Credit
View PDF

KBRA Affirms Ratings for Trapeza CDO X, Ltd.

28 Oct 2025   |   New York

Contacts

KBRA affirms the ratings to five classes of notes issued by Trapeza CDO X, Ltd. and Trapeza CDO X, Inc. (“Trapeza X”), a cash flow collateralized debt obligation (“CDO”) managed by Hildene Collateral Management Company, LLC (“Hildene”).

Trapeza X is a CDO of TruPS securities, surplus notes, and sub debt issued by community and regional banks, and their holding companies. The K-WARF of the portfolio is 231, which is within the BBB to BBB- category. Trapeza X is a static transaction and does not allow for any reinvestments.

The performing portfolio at initial rating consisted of 28 assets from 27 obligors with a total collateral par value of $193.9 million and liabilities of $322.7 million. It now contains 25 performing obligors with a total performing par value of $192.4 million and liabilities of $332.9 million while $45.5 million of defaults were recognized as of the latest portfolio date.

The liabilities increased by $7.7 million due to an increase in the deferred interest balance by $9.4 million since last year, as there is insufficient interest to service Class D-1 and D-2 current interest. The decrease in the Class A-1 Note balances can be attributed to the underlying asset prepayments and use of excess interest to pay sequentially as a result of the failing Class C coverage tests. The deal maturity is on July 6, 2041.

Since last year, the K-PD, which adjusts for the asset tenor, changed from 7.1% to 6.2% while the WAL changed from 11.6 to 10.5 years. The current KWARF, 231, is in the BBB to BBB- range. We first rated the transaction with portfolio date on November 6, 2024 and it closed on June 15, 2006.

Kroll Bond Rating Agency’s (KBRA) ratings on Class A-1 and A-2 Notes represent timely payment of interest and ultimate payment of principal by the applicable stated maturity date. KBRA’s rating on the Class B, C-1 and C-2 Notes considers the 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.

Related Publication

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.

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: 1012001