KBRA Assigns Preliminary Rating to FNA 8, LLC

KBRA assigns a preliminary rating to one class of notes issued by FNA 8, LLC (FNA 8), a $242.7 million property tax lien ABS transaction. FNA 8 represents the Company’s sixth public tax lien ABS securitization. Proceeds from the Notes will be used to acquire a portfolio of 6,251 property tax lien assets from municipalities within 11 states, including Texas (68.4%), Illinois (9.4%), and New Jersey (7.8%), with a redemptive value of approximately $140.1 million (the Initial Tax Liens) and a weighted average original lien rate of 10.5%.

First National Holdings II, LLC (FNH or the Company) was founded in 2004 and is a specialty finance holding company that purchases real estate tax liens from government entities. FNH is an affiliate of ArrowMark Partners, an asset management company with approximately $21 billion assets under management. FNH’s current portfolio spans 13 states and totals approximately $378.0 million as of February 2025. FNH is the holding company for both First National Assets, the tax lien business, and Propel Financial Services, the tax loan business.

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Methodologies

• ABS: Property Tax Lien ABS Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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: 1008510

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