Company

Kabbage Attains BBB Debt Rating

Rating Gives Leading Online Small Business Lender Power to Provide Even More Funding

Kabbage, Inc., the leading online provider of small business loans, announced today that it has attained a BBB rating on $136 million of class A notes that are part of its $270 million securitized credit facility. This rating is a part of the largest securitized credit warehouse for small business loans and creates a lower cost of capital for the company to continue its rapid expansion.

“Attaining a rating that is better than investment grade is a critical stamp of approval from the investment community. This positions Kabbage for our next stage of growth,” said Kevin Phillips, CFO of Kabbage. “The rating further validates the power of our technology and data platform to manage risk effectively by underwriting businesses in real time both initially and on a persistent basis throughout the entire life cycle of a business.”

The BBB rating opens up Kabbage’s lending platform to new investors, such as life insurance companies and pension funds, who are unable to deploy significant amounts of capital on alternative lending platforms. It also means that the small business alternative financing space led by Kabbage is rapidly moving from alternative to mainstream. Kabbage has already deployed more than $400 million to small businesses, and is now able to access capital at a lower cost to reach even more businesses.

The rating was provided by Kroll Bond Rating Agency on the existing debt facility managed by Guggenheim Securities. Kabbage is expanding the facility to sell the new rated notes beginning this week.

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