KBRA Assigns Preliminary Ratings to Fora Financial Asset Securitization 2026 LLC, Series 2026-1 (FFAS 2026-1)

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to notes issued Fora Financial Asset Securitization 2026 LLC (the “Issuer”). The Issuer will issue five classes of Notes (collectively, the “Notes” or “Series 2026-1 Notes”) totaling $130 million. The FFAS 2026-1 transaction is the fourth securitization for the Company.

Fora Financial LLC founded in 2008, provides financing to small and medium-sized business through the use of proprietary risk scoring models, transactional data and technology systems. Fora originates small business loans and purchases advance business receivables through four originators: Fora Financial Business Loans LLC (“FFB”), Fora Financial Advance LLC (“FFA”), Fora Financial West, LLC (“FFW”), and Fora Financial East LLC ("FFE"). Fora has funded over $5.0 billion to more than 55,000 Merchants and employs 200 people between its New York and Miami offices.

The proceeds of the sale of the Series 2026-1 Notes will be used to purchase receivables, fund the reserve account, pay related fees and expenses, and repay the Series 2024-1 Notes.. The Series 2026-1 Notes are “expandable” term notes such that at any time during the Revolving Period, the Issuer may periodically upsize the Series 2026-1 Notes, up to a maximum amount of $500 million, as long as certain conditions are met, including receipt of Rating Agency Confirmation.

The transaction features a revolving period (the “Revolving Period”), which will end on the earlier of (i) the close of business on May 31, 2029, 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, which will purchase such additional 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. The transaction includes eligibility criteria and concentration limits for the issuer collateral pool.

To access ratings and relevant documents, click here.

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Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• Structured Finance: Global Structured Finance Counterparty 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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