KAPITUS RECEIVES RATING AFFIRMATION FROM KBRA ON SECURITIZATION NOTES

October 1, 2020

NEW YORK, NY– Kapitus, a leading provider of financing to small and medium-sized businesses, has received rating affirmation from Kroll Bond Rating Agency (“KBRA”) on three classes of notes it issued through SFS Asset Securitization LLC (“SFS”).

According to KBRA, “the affirmations are due to KBRA’s analysis of the supporting collateral pool of receivables, Kapitus’s managed static pool performance data and current credit enhancement levels for each class of notes.” In addition, the ratings on the three classes of notes have been removed from “Watch Downgrade”. On March 30, 2020 KBRA placed all outstanding ratings from 10 U.S. small business ABS transactions, covering 29 securities and $2.1 billion outstanding, on Watch Downgrade owing to the economic effects of Covid-19.

“We are pleased with the rating affirmations from KBRA as it underscores our approach to underwriting and credit risk and shows the importance of proactive management through the ongoing covid-19 pandemic,” said Andrew Reiser, Chief Executive Officer at Kapitus. “We are proud of the fact that Kapitus is among the only companies in the space to perform through this crisis and remain fully open for business and given the current consolidation of the industry we believe we are well positioned for future growth.”

About Kapitus

Founded in 2006 and headquartered in NYC, Kapitus is one of the most reliable and respected names in small business financing. As both a direct lender and a marketplace built with a trusted network of lending partners, Kapitus is able to provide small businesses the financing they need, when and how it is needed. With one application business owners can save time and money, while eliminating the stress that comes with applying to different lenders. At Kapitus, we believe that business owners should be able to focus on running their business, while we take care of the financing. To learn more, visit www.kapitus.com.

The notes are not registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from, or a transaction not subject to, registration requirements. The notes were offered only to qualified institutional buyers under Rule 144A and to persons outside the United States pursuant to Regulation S under the Securities Act. This press release shall not constitute an offer to sell, or the solicitation of an offer to sell the notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer or solicitation or sale is unlawful.

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