KBRA Assigns Preliminary Ratings to LendingPoint 2021-A Asset Securitization Trust
NEW YORK--(BUSINESS WIRE)--Jul 9, 2021--
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by LendingPoint 2021-A Asset Securitization Trust (“LP 2021-A”), a consumer loan ABS transaction.
LP 2021-A will issue four classes of notes totaling approximately $516.5 million. The transaction includes a three-month prefunding period which could represent up to 20% of the total receivables balance. The preliminary ratings reflect initial credit enhancement levels of 34.35% for the Class A notes, 25.00% for the Class B notes, 10.50% for the Class C notes and 5.50% for the Class D notes.
This transaction represents LendingPoint LLC’s (“LendingPoint” or the “Company”) fifth KBRA-rated securitization of non-prime unsecured consumer installment loans. Founded in July 2014, LendingPoint is a wholly owned subsidiary of LendingPoint Holdings LLC, which is a wholly owned subsidiary of LendingPoint Consolidated, Inc. The Company issued its first direct to consumer (“DTC”) loan in Q1 2015, and through June 30, 2021 has originated over $3.0 billion DTC loans with a current principal outstanding amount of $1.2 billion. The Company currently offers two different loan products: DTC and point of sale (“POS”); however, only DTC loans will be included in LP 2021-A. DTC loans are typically used by the borrowers for either debt consolidation or credit card refinancing, to pay for a home improvement or to make a major purchase while POS loans are used to finance a purchase at one of the Company’s approved merchants.
KBRA applied its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA considered its operational review of LendingPoint, as well as periodic due diligence calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
- Consumer Loan ABS Global Rating Methodology
- Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
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.
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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CONTACT: Analytical Contacts William Carson, Senior Director (Lead Analyst)
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SOURCE: Kroll Bond Rating Agency, LLC
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PUB: 07/09/2021 10:03 AM/DISC: 07/09/2021 10:03 AM