KBRA assigns preliminary ratings to two classes of notes that will be issued from Brex Commercial Charge Card Master Trust, Series 2022-1 (“Brex 2022-1”), a corporate charge card asset backed securities transaction issued out of the Brex Commercial Credit Card Master Trust (“Master Trust”). The ratings reflect the initial credit enhancement levels of 4.86% for the Class A notes and 2.47% for the Class B notes. Credit enhancement on the notes consists of; overcollateralization, subordination (except for the class B notes), a reserve account funded at closing, and excess spread generated by discounting the pool balance. Brex 2022-1 will include a revolving period of approximately 23 months.

Brex Inc. (“Brex”) is the Sponsor, Servicer, Administrator, and Seller for the transaction. Brex 2022-1, represents the Company’s third offering of asset-backed securities sponsored by Brex. The Brex 2022-1 Notes are collateralized by a pool of non-revolving corporate charge card accounts, and receivables created from those accounts in the Master Trust, for which the Series 2022-1 Notes are allocated a percentage interest. The accounts are opened through the Brex platform and ultimately approved and originated through its partner bank relationships.

The collateral in the Master Trust as of the March 2, 2022, Information Date includes approximately $418 million of receivables. Excluding accounts with a principal balance less than or equal to zero, the accounts have an average principal balance of $46,452, an average underwriting cash balance of $8.2 million, and an average active credit limit of $413,103.

KBRA analyzed the transaction using the General Global Rating Methodology for Asset-Backed Securities, Credit Card ABS Global Rating Methodology and the Global Structured Finance Counterparty Methodology. 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.

In applying the methodologies, KBRA analyzed performance data and the underlying collateral pool and analyzed the capital structure using stressed cash flow assumptions. KBRA considered its operational review of the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Related Publications

• General Global Rating Methodology for Asset-Backed Securities
• Credit Card ABS Global Rating Methodology
• Global Structured Finance Counterparty 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 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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