KBRA Assigns Preliminary Ratings to RFS Asset Securitization II LLC, Series 2024-1 Notes
July 15 2024 - 11:33AM
Business Wire
KBRA assigns preliminary ratings to notes issued RFS Asset
Securitization II LLC (the “Issuer”). RFS Asset Securitization II
LLC will issue five classes of Series 2024-1 Notes totaling $160
million initially.
Rapid Financial Services, LLC (“RFS”), a Delaware limited
liability company and Small Business Financial Solutions, LLC, a
Delaware limited liability company (“SBFS”, together with RFS, the
“Company”) is a specialty financial services company that uses its
proprietary risk scoring models, transactional data, and technology
systems to provide capital to small and medium-sized businesses.
RFS was founded in 2009 and since inception has provided over $4.2
billion in financing to over 55,000 businesses nationwide. As of
March 31, 2024, the Company had 177 employees and is headquartered
in Bethesda, MD.
The proceeds of the sale of the Series 2024-1 Notes will also be
used to purchase receivables, fund the reserve account and pay
related fees and expenses. The Series 2024-1 Notes are “expandable”
term notes such that at any time during the Revolving Period, the
Issuer may periodically upsize the Series 2024-1 Notes, up to a
maximum amount of $500 million, as long as certain conditions are
met, including receipt of Rating Agency Confirmation.
The transaction also features a revolving period (the “Revolving
Period”), which will end on the earlier of (i) prior to the close
of business on June 30, 2027, approximately 36 months after the
initial closing date and (ii) the date on which a Rapid
Amortization Event has occurred. During the Revolving Period, the
Seller will transfer additional Receivables to the Issuer, who will
purchase such additional eligible Receivables so long as (a) the
Issuer and the Receivables satisfy all conditions set forth in the
transaction documents and (b) a Rapid Amortization Event has not
occurred and is not continuing.
Credit enhancement will consist of overcollateralization,
subordination (except for the Class E Notes), excess spread, a
reserve account (funded at closing) and the excess funding
account.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: General Global Rating Methodology for Asset Backed
Securities
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004984
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Analytical Contacts
Maxim Berger, Director (Lead Analyst) +1 646-731-1260
maxim.berger@kbra.com
Brockton Bowers, Senior Analyst +1 646-731-2418
brockton.bowers@kbra.com
Edward Napoli, Director +1 646-731-1284
edward.napoli@kbra.com
Melvin Zhou, Managing Director (Rating Committee Chair) +1
646-731-2412 melvin.zhou@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com