KBRA Assigns Preliminary Rating to FNA VI, LLC

Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to a note class of FNA VI, LLC, a property tax lien ABS transaction.

This transaction represents the fourth public term securitization and sixth overall for First National Holdings LLC (“FNH” or the “Company”). On the Closing Date, the company will own all of the membership interests of the Issuer. The initial collateral pool is composed of property tax lien assets, including tax liens and delinquent California PACE assets, from municipalities in 11 states that have been purchased by special purpose tax lien holding subsidiaries of the Company that are contributed by the Company to the Issuer at closing.

The transaction features a new tax lien asset account with $36.0 million deposited at closing to purchase new tax liens during the reinvestment period of nine (9) months on properties that meet certain eligibility criteria on or prior to the applicable Sale Date for such Tax Lien Asset or date of acquisition of such Subsequent Tax Lien Asset by the Issuer. The transaction also includes a subsequent tax lien asset account to purchase subsequent tax liens on properties related to either tax liens in the initial pool or to tax liens purchased from the additional tax lien account.

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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 Forms 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 Forms referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. 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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.

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