KBRA Assigns Preliminary Ratings to Prosper Credit Card 2026-1 Issuer LLC

NEW YORK--(BUSINESS WIRE)-- KBRA assigns preliminary ratings to six classes of notes that will be issued from Prosper Credit Card 2026-1 Issuer LLC ("PMCC 2026-1"), a credit card ABS transaction. The preliminary ratings reflect initial credit enhancement levels ranging from 67.91% for the Class A notes to 7.51% for the Class F notes. Credit enhancement on the notes consists of excess spread generated by the pool of credit card receivables, overcollateralization, subordination (except for the Class F Notes), and a reserve account.

PMCC 2026-1 will include a revolving period that is approximately two years where no principal payments will be made on the notes unless an Early Amortization Event occurs. The receivables generated for PMCC 2026-1 are generated by accounts owned by Coastal Community Bank, a Washington state chartered bank. This transaction represents the inaugural 144A credit card ABS securitization for Prosper Marketplace, Inc. ("Prosper" or the "Company").

Founded in 2005 and headquartered in San Francisco, CA, Prosper is a consumer lending technology company with two primary product offerings - personal loans and credit cards. The largest component of the Company’s business is its online consumer installment loan program administered through www.prosper.com. The Prosper consumer installment loan business represents approximately 88% of year-to date 2026 Company transaction volumes. The Company introduced its general purpose credit card product under the MasterCard brand (the “Prosper Program”) in late-2021 and generally targets a non-prime customer, as compared to its consumer loan program which generally targets a near-prime customer. Under the Prosper Program, the Company provides services to support the credit card program which include marketing, underwriting, and servicing the credit card accounts.

KBRA applied its Credit Card ABS Global Rating Methodology as well as its Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA considered its operational review of Prosper as well as periodic update calls with the Company. Operative agreements and legal opinions for the transaction will be reviewed prior to closing.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• ABS: Credit Card ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty 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.

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), one of the major credit rating agencies (CRA), is a full-service CRA 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. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1016577

View source version on businesswire.com: https://www.businesswire.com/news/home/20260820483901/en/

Analytical Contacts

Jacob Paulose, Associate Director (Lead Analyst)
+1 646-731-1269
[email protected]

Richard DiGeronimo, Senior Analyst
+1 646-731-1317
[email protected]

Melvin Zhou, Managing Director (Rating Committee Chair)
+1 646-731-2412
[email protected]

Business Development Contact

Brad Korch, Director
+1 646-731-2392
[email protected]

Source: Kroll Bond Rating Agency, LLC

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