KBRA Assigns Preliminary Ratings to Small Business Lending Trust 2019-A

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issues by Small Business Lending Trust 2019-A (“SBIZ 2019-A”).

This transaction represents the first ABS securitization collateralized by loans made to small and medium‑sized enterprises (“SMEs”) incorporated in the United States and originated via the online lending platform operated by Funding Circle Holdings plc. KBRA has previously rated two transactions collateralized by SME loans originated via the Funding Circle platform based in the United Kingdom. Founded in 2010, Funding Circle operates an online lending platform to originate loans in the UK, US, Germany, and the Netherlands. In the United States, Funding Circle offers fixed rate, fully amortizing, SME loans secured by a personal guarantee and a lien on the borrower’s assets.

KBRA analyzed the transaction using the Global General Rating Methodology for Asset-Backed Securities and the Global Structured Finance Counterparty Methodology. KBRA also conducted an on-site operational review of Funding Circle at the Company’s San Francisco offices in January 2019. KBRA will review the final transaction documents, legal structure, operative agreements, and legal opinions prior to assigning final ratings.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: Small Business Lending Trust 2019-A

Class

Preliminary Rating

Initial Amount

Class A

A- (sf)

$142,800,000

Class B

BBB (sf)

$15,750,000

Class C

BB (sf)

$18,900,000

Class D

B+ (sf)

$21,000,000

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 Contacts:

Brendan Carter, Associate Director
+1 (646) 731-3315
bcarter@kbra.com

Gopal Narsimhamurthy, Director
+353 (1) 588 1245
gnarsimhamurthy@kbra.com

Abby Barkwell, Associate Director
+1 (646) 731-3304
abarkwell@kbra.com

Eric Neglia, Managing Director
+1 (646) 731-2456
eneglia@kbra.com

Contacts

Analytical Contacts:

Brendan Carter, Associate Director
+1 (646) 731-3315
bcarter@kbra.com

Gopal Narsimhamurthy, Director
+353 (1) 588 1245
gnarsimhamurthy@kbra.com

Abby Barkwell, Associate Director
+1 (646) 731-3304
abarkwell@kbra.com

Eric Neglia, Managing Director
+1 (646) 731-2456
eneglia@kbra.com