DBRS Assigns Ratings to Kabbage Asset Funding 2017-A LLC

DBRS, Inc. (DBRS) assigned ratings to the following classes of loans extended by a group of lenders to Kabbage Asset Funding 2017-A, LLC (the Facility):

-- Up to $148,150,000 of Class A Loans rated A (sf)
-- Up to $24,868,000 of Class B Loans rated BBB (sf)

The Facility is a warehouse financing arranged for the benefit of Kabbage, Inc. (Kabbage) to support originations of small business loan receivables. Kabbage acts as servicer for the Facility.

The ratings are based on a review by DBRS of the following analytical considerations:
--Transaction capital structure and form and sufficiency of available credit enhancement.
--The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. The ratings for the Facility address the payment of timely senior interest on a monthly basis and the repayment of principal by the final maturity date.
--The transaction parties’ capabilities with regard to originations, underwriting and servicing.
--The credit quality of the collateral and the performance of Kabbage’s small business loan portfolio.
--The triggers with respect to the collateral pool performance and servicer financial solvency, which are designed to protect the lenders in a stressed environment.
--The legal structure, which is consistent with the DBRS methodology “Legal Criteria for U.S. Structured Finance,” as well as the presence of legal opinions which address the true sale of the assets to the Facility, the non-consolidation of the special-purpose vehicle with Kabbage, and that the lenders have a valid first-priority security interest in the assets.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodologies are Rating CLOs and CDOs of Large Corporate Credit and Rating U.S. Structured Finance Transactions, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.