KBRA assigns preliminary ratings to five classes of Series 2022-2 Notes (the “RFS 2022-2 Notes”) issued by RFS Asset Securitization V, LLC.

RFS Asset Securitization V, LLC (the “Issuer”) will issue five classes of Series 2022-2 Notes totaling $100 million initially. The proceeds of the sale of the Series 2022-2 Notes will also be used to purchase receivables, fund the reserve account and pay related fees and expenses. The Series 2022-2 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.

RFS was founded in 2009, is headquartered in Bethesda, MD and also has an office in Detroit, MI. RFS has provided over $3.0 billion in financing since inception to over 45,000 businesses nationwide. RFS is a specialty financial services and technology company that uses its proprietary risk scoring models, transactional data, technology systems and platforms to provide capital to small and medium-sized businesses. RFS's underwriting approach relies on multiple data sources and metrics related to a Merchant and its owners that RFS believes to be predictive of the business' credit performance.

The transaction features a revolving period, which will end on the earlier of (i) September 30, 2025, approximately 36 months after the closing date and (ii) the date on which a rapid amortization event has occurred that is not later cured or waived. Credit enhancement will consist of overcollateralization, subordination, excess spread, a reserve account (initially funded in an amount equal to 0.50% of the initial Series 2022-2 note balance divided by 97.30%), and an excess funding account.

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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 pursuant to the Temporary Registration Regime. 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.

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