KBRA assigns preliminary ratings to three classes of notes (the “Notes”) issued by KCG Securitization II, LLC, Series 2026-1 (“KCG 2026-1” or the “Issuer”).

Kalamata.com, LLC (“Kalamata”), through its subsidiaries and affiliates, Kalamata Capital Group, LLC (“KCG”, the “Company” or “Servicer"), Black Olive Capital II LLC and Black Olive Capital LLC (“Black Olive Originators”), provides financing to small and medium-sized business through merchant cash advances and small business loans. Kalamata was founded in 2013 and has provided businesses with access to over $1.15 billion across over 11,500 fundings based on its proprietary risk scoring models, traditional underwriting, transactional data, and technology systems. Kalamata has approximately 62 employees with offices in Bethesda, MD and New York, NY.

KCG 2026-1 is the second securitization for the Company. This transaction is secured by a revolving portfolio of receivables (“Receivables”) consisting of participations in - future receivables (“Business Advances”) purchased from small- and medium-sized businesses (“Merchants”) at a discounted purchase price. Business Advances are also commonly referred to as a Merchant Cash Advance (“MCAs”) and Business Loans (“Business Loans”) with fixed terms and rates made to Merchants.

KCG Securitization II, LLC will issue three classes of Series 2026-1 Notes, Class A Class B and Class C Notes totaling $115.0 million. The proceeds of the sale of the Series 2026-1 Notes will be used to pay down the Company’s outstanding ABS facility, KCG 2024-1, purchase receivables, fund the reserve account, and pay related fees and expenses. The transaction features a revolving period, which will end on the earlier of (i) prior to the close of business on February 28, 2029, approximately 36 months after the initial closing date of Series 2026-1 and (ii) the date on which a Rapid Amortization Event has occurred. The Series 2026-1 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 million, as long as certain conditions are met, including receipt of Rating Agency Confirmation.

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Related Publication

• Credibly Asset Securitization II LLC, Series 2024-1 Surveillance Report

Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• Structured Finance: 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), 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.

Doc ID: 1013766

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