KBRA Assigns Preliminary Ratings to Marlette Funding Trust 2021-3

October 12, 2021 6:49 PM EDT

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NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Marlette Funding Trust 2021-3 (“MFT 2021-3”), a $318.90 million consumer loan ABS transaction.

The ratings reflect initial credit enhancement levels of 40.65% for the Class A Notes to 9.75% for the Class D Notes. Credit enhancement consists of overcollateralization, subordination (in the case of the Class A, Class B, and Class C Notes) a reserve account funded at closing, and excess spread.

Founded in 2013 in Wilmington, DE, Marlette Funding, LLC (“Marlette”) 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”) that are included in this securitization. This transaction is the 17th securitization sponsored by Marlette. The first multi-seller securitization issued from Marlette Funding Trust (“MFT”) was in August 2016. Under the multi-seller securitization program, Marlette is the Sponsor and the collateral is contributed from Marlette and whole loan buyers of loans originated through the Platform.

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, the proposed capital structure. KBRA also conducted an operational assessment of the Marlette Platform, as well as a review of the transaction’s legal structure and transaction documents. Operative agreements and legal opinions will be reviewed prior to closing.

Click here to view the report. To access ratings and relevant documents, click here.

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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.

Analytical Contacts

Rahel Avigdor, Senior Director (Lead Analyst)
+1 (646) 731-1203
rahel.avigdor@kbra.com

Alex Luthringer, Senior Analyst
+1 (646) 731-1252
alex.luthringer@kbra.com

Eric Neglia, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2456
eric.neglia@kbra.com

Business Development Contact

Ted Burbage, Managing Director
+1 (646) 731-3325
ted.burbage@kbra.com

Source: Kroll Bond Rating Agency



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