KBRA Assigns Preliminary Ratings to Oportun Funding XIII, LLC, Series 2019-A

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of Oportun Funding XIII, LLC (“Oportun 2019-A”), a consumer loan asset-backed securities transaction.

The collateral in the Oportun 2019-A deal includes approximately $177.26 million of loans, as of the June 27, 2019 statistical calculation date. The transaction includes a three-year revolving period, ending August 1, 2022, and a three-month prefunding period. During the revolving and prefunding periods additional collateral may be funded in the transaction so long as it complies with certain eligibility criteria and concentration limits. The preliminary ratings reflect the initial credit enhancement levels ranging from 30.0% for the Class A note, 15.0% for the Class B note, 10.00% for the Class C note and 5.0% for the Class D note.

Oportun Financial Corporation (“Oportun” or the “Company”) is a California based consumer finance company founded in 2005 and headquartered in San Carlos, California. The Company provides unsecured installment loans to borrowers who do not have a credit score, or who may have a limited credit history and Oportun believes are “mis-scored,” meaning that traditional credit scores do not properly reflect their creditworthiness. Oportun operates in the following 12 states: California, Texas, Illinois, Utah, Nevada, Arizona, Missouri, New Mexico, Florida, Wisconsin, Idaho and New Jersey. The Company offers its mobile platform in all states of operation and has 322 retail locations in 9 states. Oportun entered and currently operates in Missouri, Wisconsin and Idaho on a “mobile-first” basis, which is to initially originate and serve customers in a state without any retail locations. As of March 31, 2019, the Company had $1.81 billion in loans outstanding to 699,650 customers and since inception it has originated over 3.1 million loans for more than $6.8 billion.

KBRA applied its Global Consumer Loan ABS Rating Methodology and the Global Structured Finance Counterparty Methodology for Asset-Backed Securities as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Oportun’s historical gross loss data. KBRA also conducted an operational assessment of Oportun, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

Preliminary Ratings Assigned: Oportun Funding XIII, LLC, Series 2019-A


Preliminary Rating

Initial Class Principal


A+ (sf)



BBB+ (sf)



BB (sf)



B (sf)


To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)





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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.


Analytical Contacts:

Jenny Ovalle, Director

(646) 731-2309

[email protected]

William Carson, Senior Director

(646) 731-2405

[email protected]

Michael Polvere, Senior Analyst

(646) 731-3339

[email protected]

Rosemary Kelley, Senior Managing Director

(646) 731-2337

[email protected]

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