Kroll downgrades Kabbage, Funding Circle small business ABS

By Jennifer Kang
05 Aug 2020

Kroll’s recent downgrades of three classes of notes issued by online small business lender Kabbage, just one week after the rating agency took negative rating action on six notes from Funding Circle, show the distress rising up from businesses to the marketplace lending sector as a result of the coronavirus pandemic.

The difficulties US small businesses have endured since the pandemic hit have worsened performance on loans they have borrowed from the marketplace lending sector.

The concerns around loan performance peaked at the beginning of August, as many government aid programmes, like the stimulus check, expired.

That is ...

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