KBRA Assigns Preliminary Ratings to CPC Asset Securitization IV, LLC, Series 2025-1 Notes

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to notes issued CPC Asset Securitization IV LLC (the “Issuer”). CPC Asset Securitization IV LLC will issue four classes of Series 2025-1 Notes totaling $85 million initially.

Channel Partners Capital (“CPC,” or the “Company”) is the Sponsor, Seller, and Servicer for CPC 2025-1. CPC was founded in 2009 and headquartered in Minnesota with offices in Minnesota, Iowa, New Jersey, and Georgia. The Company provides financing to small businesses through the use of a proprietary risk scoring model, transactional data and technology systems. As of March 31, 2025, the company had approximately 210 employees and has funded over $2.92 billion to more than 30,000 businesses via 46,500 transactions. In April 2025, the Company and its subsidiaries were acquired by Onset Financial, Inc., an equipment leasing company. CPC and its subsidiaries are now wholly-owned by Onset Financial, Inc.

The proceeds from CPC Series 2025-1 will be used to pay off CPC Asset Securitization II LLC, Series 2023-1 (“CPC 2023-1”). The Series 2025-1 Notes are “expandable” term notes such that at any time during the Revolving Period, the Issuer may periodically upsize the Series 2025-1 Notes, up to a maximum amount of $500 million, as long as certain conditions are met, including receipt of Rating Agency Confirmation. Noteholder consent is not required for these upsizes.

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 July 31, 2028, 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 subordination (except for the Class D Notes), excess spread, a reserve account (funded at closing) and the excess funding account.

To access ratings 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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