KBRA Assigns Preliminary Rating to Channel Finance S.A., Compartment 010 (Arslanian Diamond Inventory and Receivables Securitisation)

DUBLIN–(BUSINESS WIRE)–#KBRA–KBRA Europe (KBRA) assigns a preliminary rating to Channel Finance S.A., acting through and in respect of its Compartment 010 (Channel 010 or the Issuer or SI Goods and Receivables), a diamond inventory and receivables (arising from the sale of inventory) securitisation.

The transaction represents the first diamond inventory and receivables securitisation serviced by the three main operating entities of Sana Investment Limited (Sana or the Performance Guarantor), namely Arslanian Group NV (Belgian Seller), Arslanian Group DMCC (United Arab Emirates (UAE) Seller) and Adamas Diamonds Far East Limited (Hong Kong Seller) (collectively the Sellers, Servicers, the Group or Arslanian).

The securitisation is backed by Arslanian’s eligible inventory of rough and polished diamonds as well as eligible receivables. The transaction features a borrowing base concept whereby the borrowing base must be at least equal to the outstanding aggregate debt balance which will be tested at least every second business day. The collateral for the transaction is secured by eligible rough and polished diamond inventory owned by Arslanian, as well as certain eligible receivables and monies and other property maintained in the transactional accounts.

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• General Global Rating Methodology for Asset-Backed Securities
• 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.

This credit rating is endorsed by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

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.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA Europe

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. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

Contacts

Analytical Contacts

Killian Walsh, Senior Director (Lead Analyst)

+353 1 588 1184

killian.walsh@kbra.com

Karl Cummins, Director

+353 1 588 1240

karl.cummins@kbra.com

Alan Greenblatt, Managing Director

+1 (646) 731-2496

alan.greenblatt@kbra.com

Rosemary Kelley, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2337

rosemary.kelley@kbra.com

Business Development Contacts

Mauricio Noé, Co-Head of Europe

+44 208 148 1010

mauricio.noe@kbra.com

Miten Amin, Managing Director

+44 208 148 1002

miten.amin@kbra.com