NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes (the “Notes”) issued by RFS Asset Securitization LLC, Series 2018-1 (“RFS 2018-1”).
This transaction is RFS’s (the “Company” or the “Issuer”) first securitization. The proceeds of the sale of the Series 2018-1 Notes will be used to purchase receivables, fund the reserve account and pay related fees and expenses. The Notes are “expandable” term notes such that at any time during the revolving period, the Issuer may periodically issue additional Notes, up to a maximum amount of $500.0 million, as long as certain conditions are met, including receipt of Rating Agency Confirmation.
Founded in 2009, RFS is a specialty financial services and technology company that uses its proprietary risk scoring models, transactional data, technology systems and platforms to provide capital to small and medium-sized businesses. RFS's underwriting approach relies on multiple data sources and metrics related to a Merchant and its owners that RFS believes to be predictive of the business' credit performance.
The transaction features a revolving period, which will end on the earlier of (i) November 30, 2021, approximately 36 months after the closing date and (ii) the date on which a rapid amortization event has occurred that is not later cured or waived. Credit enhancement will consist of overcollateralization, subordination (in the case of the Class A and Class B Notes), excess spread, a reserve account (initially funded in an amount equal to 0.50% of the initial Series 2018-1 note balance divided by 95.00%) and the excess funding account.
KBRA analyzed the transaction using the Global General Rating Methodology for Asset-Backed Securities published on November 28, 2017.
To access ratings, reports and disclosures, click here.
|Notes||Preliminary Rating||Initial Principal Balance|
|Class A||A (sf)||$67,368,000|
|Class B||BBB (sf)||$7,368,000|
|Class C||BB (sf)||$5,264,000|
Related Publications: (available at www.kbra.com)
- Global General Rating Methodology for Asset-Backed Securities
- RFS Asset Securitization LLC, Series 2018-1 Peer Comparison
CONNECT WITH KBRA
About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.