Kroll Bond Rating Agency Assigns Preliminary Ratings to Kabbage Asset Securitization LLC, Series 2017-1

Date : 02/17/2017 @ 11:46AM
Source : Business Wire

Kroll Bond Rating Agency Assigns Preliminary Ratings to Kabbage Asset Securitization LLC, Series 2017-1

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes (the “Notes”) issued by Kabbage Asset Securitization LLC.

This transaction is Kabbage, Inc.’s (“Kabbage” or the “Company”) second securitization and it is expected that the proceeds of the sale of the Notes will be used to refinance the Company’s existing securitization.

Founded in 2009, Kabbage is a financial technology company that uses its proprietary risk scoring models, transactional data, technology systems and platform to provide fully automated, online access to business loans for small- and medium-sized businesses. The Kabbage business loan program is offered via Kabbage’s automated loan application, underwriting and servicing platform, www.kabbage.com.

The Notes will be secured by a revolving pool of receivables consisting of (i) business loans or (ii) merchant cash advances. The transaction benefits from sufficient credit enhancement comprised of overcollateralization, subordination of the junior classes of Notes, a reserve account and excess spread, as well as a dynamic structure that accelerates principal payments on the Notes in the event of weak performance. The transaction features a 36-month revolving period during which time principal collections may be reinvested to purchase additional receivables, based on certain eligibility requirements.

KBRA analyzed the transaction using KBRA’s General Rating Methodology for Asset-Backed Securities published on July 30, 2012.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, Kabbage Asset Securitization LLC, which was published today at www.kbra.com.

Notes           Preliminary Rating           Initial Principal Balance Class A           A (sf)           $370,370,000 Class B           BBB (sf)           $79,365,000 Class C           BB (sf)           $26,455,000 Class D           B (sf)           $23,810,000

Representations and 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 entitled Disclosure is available at the following link: Kabbage Asset Securitization LLC Representations and Warranties Disclosure.

Related Publications: (available at www.kbra.com)

  • ABS: General Rating Methodology for Asset-Backed Securities
  • ABS: Kabbage Asset Securitization LLC

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Analytical:Kroll Bond Rating AgencyAlan Greenblatt, Director646-731-2496agreenblatt@kbra.comorLenny Giltman, Managing Director646-731-2378lgiltman@kbra.comorAnthony Nocera, Managing Director646-731-2350anocera@kbra.comorFollow us on Twitter!@KrollBondRating

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