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.
Initial Principal Balance
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)
General Rating Methodology for Asset-Backed Securities
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).
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