KBRA assigns preliminary ratings to four classes of notes issued by Marlette Funding Trust 2023-1 (“MFT 2023-1”), a $303.713 million consumer loan ABS transaction.
The ratings reflect initial credit enhancement levels of 51.26% for the Class A Notes to 15.67% 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 20th securitization sponsored by Marlette and the second with Best Egg Secured Loans. 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.
To access ratings and relevant documents, click here.
Click here to view the report.
- 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. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230216005860/en/
Scharon Gordon, Associate Director (Lead Analyst)
+1 (646) 731-1328
Rahel Avigdor, Senior Director
+1 (646) 731-1203
Perry Fried, Analyst
+1 (646) 731-1220
Eric Neglia, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2456
Business Development Contact
Ted Burbage, Managing Director
+1 (646) 731-3325