KBRA, a major credit rating agency, announced the release of K-SIM, its new cash flow simulation tool. This platform enables market participants to independently model and evaluate structured credit transactions using the same cash flow analysis engine utilized by KBRA rating analysts. K-SIM replaces the legacy K-PAT tool and represents an upgrade in KBRA’s structured credit technology suite, developed to address the evolving requirements of collateralized loan obligation (CLO) managers, arrangers, and investors.
With K-SIM, users can design and test their own deal structures by maintaining full control over portfolio assumptions, structural features, and rating scenarios. The platform supports real-time scenario testing, capable of running hundreds of scenarios within seconds, all in alignment with KBRA’s structured credit rating methodology.
The tool allows users to generate detailed cash flow reports and analyze performance across various rating categories, which can accelerate internal analysis and decision-making processes. K-SIM operates via an intuitive, cloud-based interface, eliminating the need for local installation. By offering access to the same modeling logic employed by KBRA analysts, K-SIM aims to enhance alignment between market participants and the rating process.
Collaboration features include deal versioning tools, configurable scenario inputs, and triggers, facilitating iterative structure development and teamwork with internal teams or KBRA. Output is accessible directly on the platform and can also be exported to Excel for integration into existing workflows.
Eric Hudson, Senior Managing Director and Co-Head of Structured Credit Ratings at KBRA, stated, “We built K-SIM to put the power of our structured credit analytics directly into the hands of market participants. This platform helps clients move faster, work more collaboratively, and gain deeper insight into their deals, without compromising on rigor or transparency.”
Market participants can request access to K-SIM by submitting a form on the KBRA website or by contacting KBRA Business Development directly. KBRA is registered as a credit rating agency in the U.
S., EU, and UK, and is recognized as a Qualified Rating Agency in Taiwan, as well as a Designated Rating Organization for structured finance ratings in Canada.
