KBRA Releases Report – 10 U.S. Small Business ABS Deals on Watch Downgrade Due to COVID-19 Concerns

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases a report detailing its placement of all its outstanding ratings from 10 U.S. Small Business ABS transactions on Watch Downgrade status owing to the economic effects of the coronavirus disease (COVID-19).

Small businesses in the United States are directly impacted by COVID-19 containment measures and their hardship is contributing to a broader economic slowdown. Businesses have responded to the slower economic activity and reduced revenue by cutting costs, laying off staff, or closing their doors temporarily. Because of these recent and ongoing events and from information gathered from frequent calls with originators and servicers of small business lending products, KBRA expects these U.S. Small Business ABS transactions to be negatively impacted.

Click here to view the report. To access ratings and relevant documents, click here.

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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 methodologies (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 U.S. Information Disclosure Form located here, here, here, here, here, here, here and here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. 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) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts

Eric Neglia, Managing Director (Lead Analyst)

+1 (646) 731-2456

eneglia@kbra.com

Chris Baffa, Associate Director

+1 (646) 731-3312

cbaffa@kbra.com

Pritam Patel, Associate

+1 (646) 731-3374

ppatel@kbra.com

Rosemary Kelley, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2337

rkelley@kbra.com

Business Development Contact

Ted Burbage, Managing Director

+1 (646) 731-3325

tburbage@kbra.com

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