NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to four classes of bonds issued by Marlette Funding Trust 2022-3 (“MFT 2022-3”), a $310.369 million consumer loan ABS transaction.
Ratings reflect initial levels of credit enhancement from 45.64% for Class A Notes to 13.39% for Class D Notes. Credit enhancement consists of overcollateralisation, subordination (in the case of Class A, Class B and Class C) to a closed funded reserve account and an excess spread.
Founded in 2013 in Wilmington, DE, Marlette Funding, LLC (“Marlette”) operates an online marketplace lending platform, which offers personal installment loans under the Best Egg brand (www.BestEgg.com) (the “Marlette Best Egg Platform” or the “Platform”) that are included in this securitization. This operation is the 19e securitization sponsored by Marlette and the first with Best Egg Secured Loans. The first multi-seller securitization issued by Marlette Funding Trust (“MFT”) took place in August 2016. Under the multi-seller securitization program, Marlette is the sponsor and collateral is provided by Marlette and the loan buyers of loans issued through the platform. .
KBRA applied its ABS Global Rating Methodology for Consumer Lending, its Global Structured Finance Counterparty Methodology and its ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the capital structure proposed. KBRA also conducted an operational assessment of the Marlette platform, as well as a review of the transaction’s legal structure and transaction documents. Operational agreements and legal opinions will be reviewed prior to closing.
Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of key relevant rating assumptions, if any) used to determine credit rating are available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be found here.
Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency 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.