KBRA Affirms Ratings to Kapitus Asset Securitization IV LLC, Series 2024-1
24 Jan 2025 | New York
KBRA affirms its ratings on four classes of notes issued from Kapitus Asset Securitization IV LLC, Series 2024-1 (“Kapitus 2024-1”), a small business loan and merchant cash advance ABS transaction. Kapitus Asset Securitization IV LLC (the “Issuer”) issued four classes of Series 2024-1 Notes (the “Notes” or “Series 2024-1 Notes”), initially totaling $160 million. The Notes are “expandable” term notes such that at any time during the revolving period, the Issuer may periodically upsize the Notes, up to a maximum amount of $500 million, as long as certain conditions are met, including but not limited to receipt of Rating Agency Condition (“RAC”).
The rating actions follow KBRA’s analysis which indicates that existing credit enhancement for the notes and cash flows are sufficient to support the ratings following an increase to the maximum drawable amount of the Series 2024-1 Notes by $165 million. The increase to the maximum drawable amount has been effectuated pursuant to the Series 2024-1 Additional Notes Disclosure Supplement, dated January 24, 2025. The data used for this review is as of the December 2024 distribution date (November 2024 collection period). To date, the securities have received timely interest payments.
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