AM Best affirms the Long-Term Issue Credit Ratings (Long-Term IRs) on three classes of asset-backed notes issued by 321 Henderson Receivables V LLC, a special purpose Nevada limited liability company. The outlook of these Credit Ratings is stable. The rating action specifically affirms the Long-Term IR of "aaa" (Exceptional) on the $74,646,000 Class A-1 8.00% Fixed Rate Asset Backed Notes, Series 2008-3, and the $9,389,000 Class A-2 8.00% Fixed Rate Asset Backed Notes, Series 2008-3. The Long-Term IR of "a" (Excellent) on the $4,695,000 Class B 10.00% Fixed Rate Asset Backed Notes, Series 2008-3, is also affirmed. These ratings reflect both qualitative and quantitative considerations, including the default probabilities derived from stochastic modelling. The ratings rationale incorporates an update on the Long-Term Issuer Credit Ratings (Long-Term ICRs) of the insurance carriers backing the receivables, updated financial data, and remaining collateral information. Crucially, this includes the reduced payment obligations of Guaranty Associations Benefits Company, which is a not-for-profit captive insurance company formed for making payments to payees and certificate holders of the liquidated Executive Life Insurance Company of New York. The transaction’s performance, both in terms of note balance paydown and receivable collection, is in line with AM Best’s modelled expectations. The initial pool of receivables consisted of structured settlement and annuity contracts totalling approximately $189.2 million in payment obligations from 107 insurance companies. As of August 31, 2025, the pool of receivables totals approximately $44.5 million in payment obligations from 48 insurance companies. AM Best notes that the rating of the Class B notes could be upgraded if there is significant improvement in the underlying cash flows. However, the ratings could be affected negatively by a reduction in scheduled payments or a deterioration of the Long-Term ICR of the remaining insurance carriers.
