KBRA Assigns Preliminary Ratings to Prosper Marketplace Issuance Trust, Series 2019-3
NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four
classes of notes issued by Prosper Marketplace Issuance Trust 2019-3
(PMIT 2019-3). This is a $380.99 million consumer loan ABS transaction.
This transaction represents the 13th securitization
collateralized by unsecured consumer loans originated through the online
marketplace lending platform operated by Prosper Funding LLC (Prosper or
the “Company”) and the eighth from the Prosper Marketplace Issuance
Trust (PMIT).
Founded in 2005, Prosper operates an online marketplace lending platform
(www.prosper.com)
(the “Prosper Platform” or the “Platform”), where personal installment
loans are offered to prime and near prime customers. The loans in PMIT
2019-3 were all underwritten as Standard Product Loans under the WebBank
and Prosper Credit Guidelines. The loans on the Platform are originated
by WebBank, a Utah chartered Industrial Bank. The Prosper Platform
offers fixed rate, fully amortizing unsecured consumer loans ranging
from $2,000-$40,000, terms of 3 years and 5 years. Origination fees of
1%-5% are charged to the borrower based on the borrower’s risk profile
and loan term. Since inception the Prosper Platform facilitated
originations of over 1 million loans with an aggregate balance of $15
billion.
The transaction has initial credit enhancement levels of 33.70% for the
Class A Notes, 21.00% for the Class B Notes, 11.20% for the Class C
Notes and 6.50% for the Class D Notes. Credit enhancement consists of
excess spread, overcollateralization, subordination (in the case of the
Class A, B and C Notes) and a reserve account funded at closing.
KBRA applied its Global Consumer Loan ABS Methodology and Global
Structured Finance Counterparty Methodology as part of its analysis
of the transaction’s underlying collateral pool, the proposed capital
structure and the Prosper Platform’s historical gross loss data. In
addition, KBRA also conducted an operational assessment of the Prosper
Platform. KBRA will also review the operative agreements and legal
opinions for the transaction prior to closing.
Preliminary Ratings: Prosper Marketplace Issuance Trust, Series 2019-3
| Class | Rating | Initial Class Principal | ||||||
| A | A- (sf) | $270,750,000 | ||||||
| B | BBB- (sf) | $51,470,000 | ||||||
| C | BB- (sf) | $39,720,000 | ||||||
| D | B- (sf) | $19,050,000 | ||||||
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.
Contacts
Analytical Contacts:
Eric
Neglia, Managing Director
(646) 731-2456
eneglia@kbra.com
Brendan Carter, Associate Director
(646) 731-3315
bcarter@kbra.com
Melvin Zhou, CFA, Director
(646) 731-2412
mzhou@kbra.com