The Kroll Bond Rating Agency (KBRA) issues preliminary ratings for four bond classes issued by Marlette Funding Trust 2021-3 (“MFT 2021-3”), an ABS transaction of $ 318.90 million in consumer credit became.
The ratings reflect initial credit enhancement rates ranging from 40.65% for the Class A Notes to 9.75% for the Class D Notes. The credit enhancement consists of overcollateralization, subordination (in the case of Class A, Class B and Class C bonds), a reserve account that is funded upon completion, and an excess spread.
Marlette Funding, LLC (“Marlette”) was founded in 2013 in Wilmington, DE and operates an online marketplace lending platform that offers personal installment loans under the Best Egg brand (www.BestEgg.com) (the “Marlette Best Egg Platform” or the “Platform”) included in this Securitization. This transaction is the 17thNS Marlette sponsored securitization. The first multi-seller securitization from Marlette Funding Trust (“MFT”) took place in August 2016. As part of the multi-seller securitization program, Marlette is the sponsor and the collateral is provided by Marlette and entire loan buyers from loans granted via the platform.
As part of the analysis of the collateral pool underlying the transaction, the proposed capital structure, KBRA has applied its Global Rating Methodology for Consumer Credit ABS, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. KBRA also conducted an operational assessment of the Marlette platform, as well as a review of the legal structure and transactional documents of the transaction. Company agreements and legal opinions are checked before they are concluded.
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Learn more about key credit considerations, sensitivity studies that take into account what factors may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (if they are a significant factor in changing the credit rating or the rating outlook) can be found in the full rating report listed above.
A description of all the materially significant sources used in establishing the credit rating and information about the methodology (s) (including any material models and sensitivity analyzes of the relevant key assumptions for the rating, if any) that were used in determining the credit rating , are available on the information disclosure form (s) located here.
Information on the meaning of the individual assessment categories can be found here.
Further information on this rating measure can be found in the information disclosure forms mentioned above. For more information on KBRA guidelines, methods, rating scales and indications, visit www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered as an NRSRO with the Securities and Exchange Commission. 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 with the UK Financial Conduct Authority as a CRA under the temporary registration system. In addition, KBRA has been named by the Ontario Securities Commission as the designated rating organization for issuers of asset-backed securities for the submission of a short prospectus or shelf prospectus. KBRA is also recognized as a credit rating provider by the National Association of Insurance Commissioners.