KBRA assigns preliminary ratings to notes issued by CAN Capital Asset Securitization 2024-1 (“CCAS 2024-1” or the “Issuer”). CCAS 2024-1, LLC will issue three classes Notes, Class A, Class B and Class C Notes (collectively, the “Notes” or “CCAS 2024-1”) totaling $125 million.

CAN Capital, Inc. (“CAN Capital” or the “Company”), founded in 1998, operates a national lending platform that provides financing to small and medium-sized businesses. Since inception, CAN Capital has funded over $8.30 billion to more than 86,000 merchants. The Company is headquartered in Marietta, GA and has 79 full-time employees in the U.S. and Costa Rica.

CCAS 2024-1 is the second securitization for the Company, and the first since its acquisition by the entity managed by Varadero Capital L.P. The proceeds of the sale of the Notes will be used to purchase receivables, fund the reserve account and excess funding account, and pay related fees and expenses.

The transaction features a revolving period (the “Revolving Period”), which will end on the earlier of (i) the close of business on May 31, 2027, approximately 36 months after the initial closing date of CCAS 2024-1 and (ii) the date on which a Rapid Amortization Event has occurred. During the Revolving Period, the Seller will transfer additional eligible receivables to the Issuer.

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. This transaction falls within “Category 1 – Financial Assets” categorization noted within the General Global Rating Methodology for Asset Backed Securities, which typically relates to transactions that are backed by pools of consumer or commercial financial obligations owed by diverse obligors. KBRA considered its operational review of the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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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) 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.

Doc ID: 1004483

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