Monroe Capital Income Plus ABS Funding II ratings affirmed on stable loan collateral

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Monroe ABS ratings affirmed

Highlights

KBRA affirmed ratings on Monroe Capital Income Plus ABS Funding II's Class A-R, B-R, and C-R Notes, citing stable recurring revenue and middle market loan collateral.
As of the September 30, 2026 trustee report, the securitization's collateral pool totals $256.1 million across 43 obligors, with no defaulted, credit risk, or delinquent obligations.
The current portfolio K-WARF is 3319 (B-), indicating ongoing portfolio quality and test compliance that protect noteholders and support the maintained ratings profile.

Portfolio performance and rating action

As reported by KBRA, citing Kroll Bond Rating Agency, KBRA affirmed the ratings on the Class A-R Notes, Class B-R Notes and Class C-R Notes issued by Monroe Capital Income Plus ABS Funding II, LLC, a securitization managed by Monroe BDC Advisors, LLC, an affiliate of Monroe Capital LLC.

The transaction originally closed in September 2023 and was reset in November 2024. KBRA says its ratings on the Class A-R Notes and Class B-R Notes consider timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the Class C-R Notes consider ultimate payment of interest and principal by the applicable stated maturity date.

Since closing, the rated notes have received timely interest distributions. KBRA also says the securitization is backed by a portfolio of recurring revenue loans and middle market loans.

Credit metrics and sector implications

As of the September 30, 2026 trustee report, the portfolio comprises 43 obligors. The pool balance of collateral obligations stands at $256.1 million, with a principal proceeds balance of $0.2 million, bringing the adjusted pool balance to $256.3 million.

There are no defaulted, credit risk, or delinquent obligations in the portfolio. The current portfolio K-WARF is 3319, representing a weighted average portfolio credit assessment of B-.

The affirmation indicates continued stability in a middle market and recurring revenue loan securitization structure where collateral quality and test compliance remain central to noteholder protection. For structured credit investors, the absence of defaults and ongoing payment performance support the current ratings profile across the capital structure.

Our previous coverage looked at how heightened geopolitical tensions and elevated fiscal spending are increasing sovereign borrowing risks in a higher interest-rate environment. We noted that emerging and frontier markets are especially exposed because debt-service costs can rise faster than government revenues, while persistent inflationary shocks can erode fiscal headroom and weigh on credit outlooks.

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