Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes (the “Notes”) issued by CPC Asset Securitization I, LLC, Series 2021-1 (“CPC 2021-1”).
This transaction is the Company’s inaugural ABS securitization. The proceeds of the sale of the 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 Notification.
CPC was founded in 2009, headquartered in Minnetonka, Minnesota with offices Minnesota, Iowa, and Georgia. The Company provides financing to small businesses through the use of a proprietary risk scoring model, transactional data and technology systems. CPC’s underwriting approach relies on multiple data sources and metrics related to a business owner that the Company believes to be predictive of the business owner’s credit performance.
- General Global ABS Rating Methodology for Asset Backed Securities
- Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
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.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. 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.
Chris Baffa, Director (Lead Analyst)
+1 (646) 731-3312
Alex Luthringer, Senior Analyst
+1 (646) 731-1252
Eric Neglia, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2456
Business Development Contact
Ted Burbage, Managing Director
+1 (646) 731-3325