Market Overview

KBRA Assigns Preliminary Ratings to Cazenovia Creek Funding II, LLC & Caz Creek TX, LLC, Series 2018-1 Notes


Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to two
note classes of Cazenovia Creek Funding II, LLC & Caz Creek TX, LLC,
Series 2018-1, a property tax lien ABS transaction.

This transaction represents the second term securitization for Cazenovia
Creek Investment Management, LLC ("Caz Creek", "the Company", or the
"Manager"). The initial collateral pool is comprised of property tax
lien assets from municipalities within the states of Alabama, Arizona,
Connecticut, Florida, Illinois, New Jersey, Nevada, Ohio, South
Carolina, Tennessee, and Texas.

The initial collateral in the transaction includes approximately $199.6
million of property tax liens as of the June 21, 2018 initial cut-off
date. The weighted average age of the initial collateral pool is
approximately 6.4 months. The property types related to the initial
portfolio consist of residential (69.6% by redemptive value), commercial
(25.0%), vacant land (4.7%) and agricultural (0.7%). Approximately 66.5%
of the initial portfolio by redemptive value is comprised of tax lien
assets within Florida, while 10.3% and 10.2% are located within Texas
and Tennessee, respectively.

The transaction features an additional tax lien account totaling $20.0
million at closing, which may be used to purchase tax liens (up to 35%
of the initial note balance) on new properties that meet certain
eligibility criteria on or prior to the payment date in June 2019. The
transaction also includes a subsequent tax lien account totaling $2.0
million at closing to purchase subsequent tax liens on properties
subject to either tax liens in the initial pool or to tax liens
purchased from the additional tax lien account.

Credit enhancement is comprised of overcollateralization, a cash reserve
account, a working capital account, amounts in the additional and
subsequent tax lien accounts, excess spread and in the case of the Class
A notes, subordination of the Class B notes. The credit enhancement
levels for the notes are sufficient to cover KBRA's corresponding
stressed cash flow assumptions for the notes. The transaction is
structured to de-lever during periods when no subsequent liens or
additional tax liens are purchased, or when collections exceed the
amount of subsequent and additional tax lien purchases.

KBRA used the Property Tax Lien ABS Rating Methodology to analyze the
transaction's underlying collateral pool, the proposed capital structure
and Caz Creek's historical performance data. KBRA will review the
transaction's operative agreements and legal opinions prior to closing.

The preliminary ratings are based on information known to KBRA at the
time of this publication. Information received subsequent to this
release could result in the assignment of final ratings that differ from
the preliminary ratings.

Preliminary Ratings Assigned: Cazenovia Creek Funding II, LLC & Caz
Creek TX, LLC, Series 2018-1 Notes

Notes     Rating     Initial Principal Balance
Class A     AAA (sf)     $207,800,000
Class B     A (sf)     $7,000,000

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC Rule 17g-7, to provide a description of a transaction's
representations, warranties and enforcement mechanisms that are
available to investors when issuing credit ratings. KBRA's disclosure
for this transaction can be found in the report available here.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.

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