Sector developments and company hires

ACC ratings on watch downgrade
KBRA has revised five ACC watch developing placements to watch downgrade, following notification by Wilmington Trust - the trustee for three American Car Center (ACC) Trust securitisations - that collections for payment to the ABS noteholders were not received on the 20 April payment date from the servicer, Westlake Portfolio Management (WPM). However, on 21 April, the rating agency was notified by Computershare Trust Company that collections were received from WPM and that payments to the noteholders for the three securitisations had been made.

The payments cured a potential indenture default made possible by the missed payments on 20 April. The servicer reports provided also indicated that credit enhancement for the majority of the outstanding classes of notes issued by the three ACC Trust securitisations have increased during the March 2023 collection period, except for the ACC Trust 2022-1 class C and D notes. Nonetheless, KBRA is maintaining watch downgrade status on all of its outstanding ratings across the securitisations, given the circumstances surrounding the April payment date, as well as performance degradation that led to prior watch downgrade placements in February (SCI 16 March).

In other news…

EMEA
Christofferson Robb & Company has promoted Aditya Nayar to md, portfolio management, based in London. He joined the firm in September 2019, having previously been an executive director, credit structuring at UBS.

ESG scoring methodology enhanced
ISS ESG is set to update its ESG scoring methodology later this year as disclosure standards within the industry advance. The firm will implement enhancements to its Environmental & Social Disclosure QualityScore scoring methodology in Q3.

Planned changes will work to meet the current breadth of the disclosure environment with a review of the mode’s materiality assessment, as well as the addition of 60 new factors, the revision of 150 factors for greater relevance, and see almost 50 factors retired. Working to improve measures of corporate disclosure practices, augment coverage of material issues and buttress methodology transparency for subscribing investors and stakeholders, ISS’ Environmental & Social Disclosure QualityScore will be supported by 360 factors.

North America
Scott Boyle has joined Marathon Asset Management as md, global co-head of consultant relations, responsible for providing client services and solutions. Boyle has over 25 years of institutional investment experience and was previously svp and md, North America institutional consultant relations at AllianceBernstein.

Milbank has recruited three structured finance partners, led by partner Michael Urschel, to its alternative investments practice in New York. The team joins the firm from King & Spalding and includes partners Martin Eid and Kathryn Weiss.
Urschel has extensive experience in the esoteric securitisation market and together with Eid and Weiss, focuses his practice on asset financing and acquisition financing of complex assets. He was formerly head of King & Spalding’s structured finance practice and a member of its financial services leadership team.