Kroll Bond Rating Agency Assigns Preliminary Ratings to Kabbage Asset Securitization LLC, Series 2017-1
February 17 2017 - 11:46AM
Business Wire
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).
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AgencyAlan Greenblatt,
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Director646-731-2378lgiltman@kbra.comorAnthony Nocera, Managing
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