KBRA releases two research reports that examine the performance of recurring revenue loans (RRL) while also providing an update on the key metrics within RRL securitizations.

A breakdown of the two reports is as follows:

• RRL Performance Review: Private Credit: Recurring Revenue Loans Performance Update reviews the performance of the 189 companies KBRA assessed between 2023 and Q1 2025. We found that private credit lenders have suffered relatively few losses from lending to these high-growth software companies. However, as the strategy matures and underwriting standards evolve, KBRA sought to understand if the relatively low loss rate is sustainable considering the performance of 16% of the population has fallen behind the group. This report details how we arrived at these findings and further explores the RRL landscape.
• RRL Dashboard: Recurring Revenue Loan Metrics Dashboard: Q1 2025 updates our Q4 analysis that tracks and presents several key metrics in a dashboard format, sourced from quarterly collateral loan tapes provided by the issuers of KBRA-rated RRL asset-backed securities. This update incorporates collateral tapes dated through March 2025 where managers identified eight borrowers that flipped from annual recurring revenue covenants to EBITDA during Q1 2025.

Recent Publications

• Private Credit: Q1 2025 Middle Market Borrower Surveillance Compendium—the Calm Before the Storm
• Structured Credit Trend Watch: Tariff Uncertainty Clouds Issuance
• Private Credit: Tariffs and Market Volatility Impact on Private Credit Corporates
• An Inside Look at Recurring Revenue Loan ABS
• Private Credit: 2025 Outlook
• 2025 Structured Credit Sector Outlook: Favorable Currents for Sustained Flow

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.

Doc ID: 1009928

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