KBRA Assigns Ratings to RFS Asset Securitization LLC, Series 2018-1 Additional Notes and Affirms Ratings of Existing Series 2018-1 Notes

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns ratings to three classes of additional Series 2018-1 Notes (the “Series 2018-1 Additional Notes”) issued by RFS Asset Securitization LLC.

RFS Asset Securitization LLC issued three classes of Series 2018-1 Notes, Class A, Class B and Class C Notes (collectively, “Series 2018-1 Notes”) totaling $80 million on January 14, 2019. The Series 2018-1 Additional Notes include $40 million of additional Series 2018-1 Class A, Class B, and Class C Notes (together with the Series 2018-1 Notes, the “Notes”). The Series 2018-1 Additional Notes will have the same terms as the corresponding classes of Series 2018-1 Notes, including same Note Rate, Advance Rate and Legal Final Payment Date. In addition, the ratings for the previously issued $80.0 million of Series 2018-1 Notes are affirmed in conjunction with the issuance of the $40.0 million Series 2018-1 Additional Notes.

The transaction features a revolving period, which will end on the earlier of (i) prior to the close of business on November 30, 2021, approximately 36 months after the initial closing date and (ii) the date on which a Rapid Amortization Event has occurred.

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 an excess funding account.

Rapid Financial Services, LLC, (“RFS” or the “Company”) provides capital to small and medium-sized businesses that are often underserved by traditional financial institutions. RFS was founded in 2009, is headquartered in Bethesda, Maryland and employs 167 employees. The Company uses proprietary risk models to assess applicants for qualification, loan sizing and risk-adjusted pricing and has funded over $1.9 billion to more than 30,000 businesses.

Additional Notes

   

Initial Principal Balance

   

Ratings

Class A

   

$33,684,000

   

A (sf)

Class B

   

$3,684,000

   

BBB (sf)

Class C

   

$2,632,000

   

BB (sf)

Existing Notes

 

Original Principal
Balance

 

Current Principal
Balance

 

Ratings

 

Action

Class A

 

$67,368,000

 

$67,368,000

 

A (sf)

 

Affirm

Class B

 

$7,368,000

 

$7,368,000

 

BBB (sf)

 

Affirm

Class C

 

$5,264,000

 

$5,264,000

 

BB (sf)

 

Affirm

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

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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. KBRA is also 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.

Contacts

Analytical:

Chris Baffa, Associate Director
(646) 731-3312
cbaffa@kbra.com

Eric Neglia, Managing Director
(646) 731-2456
eneglia@kbra.com

Pritam Patel, Associate
(646) 731-3374
ppatel@kbra.com

Lenny Giltman, Senior Managing Director
(646) 731-2378
lgiltman@kbra.com

Contacts

Analytical:

Chris Baffa, Associate Director
(646) 731-3312
cbaffa@kbra.com

Eric Neglia, Managing Director
(646) 731-2456
eneglia@kbra.com

Pritam Patel, Associate
(646) 731-3374
ppatel@kbra.com

Lenny Giltman, Senior Managing Director
(646) 731-2378
lgiltman@kbra.com