KBRA Assigns Preliminary Ratings to CPC Asset Securitization II, LLC, Series 2023-1 Notes

KBRA assigns preliminary ratings to four classes of Series 2023-1 Notes (“CPC 2023-1”) issued by CPC Asset Securitization II, LLC. CPC Asset Securitization II, LLC will issue four classes of Series 2023-1 Notes, (collectively, the “Notes” or “Series 2023-1 Notes”) totaling $85.00 million.

The proceeds of the sale of the Series 2023-1 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 Confirmation.

CPC 2023-1 represents Channel Partners Capital (“CPC,” or the “Company”) third small business ABS securitization. CPC 2023-1 is collateralized by small business loans (“Business Loans”) and business advance agreements (“Business Advances”) (collectively the “Receivables”) across a diverse set of industries including services, transportation, manufacturing and retail industries. The Business Loans have a fixed rate, fixed payment amount, and original term as well as an initial amount and repayment amount. Business Advances do not have a fixed term or payment amount but have an initial purchase price and purchased amount. The Company sources new Business Loans and Business Advances through a wide network of relationships with Equipment Finance Companies (“EFC”) at the point of sale to EFC customers.

KBRA applied its Global General Rating Methodology for Asset-Backed Securities as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA considered its operational review of the Company, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

To access ratings and relevant documents, click here.

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Related Publications

• General Global ABS Rating Methodology for Asset Backed Securities
• Global Structured Finance Counterparty Methodology
• ESG Global Rating 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) 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. 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.

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