NEW YORK–(BUSINESS WIRE)–KBRA assigns a preliminary rating to a class of notes issued by LendingPoint Pass-Through Trust, Series 2022-ST4 (“LPPT 2022-ST4”), a $57.675 million consumer loan ABS transaction. The preliminary rating reflects an initial credit enhancement of 31.50%. Credit enhancement consists of overcollateralization and excess margin.
This transaction represents the eleventh KBRA-rated securitization secured by unsecured consumer installment loans issued through the online platform operated by LendingPoint LLC (“LendingPoint” or the “Company”) and the fourth series issued by the LendingPoint Pass -Through Trust (“LPPT”). or “Master Trust”). Founded in July 2014, LendingPoint is a wholly owned subsidiary of LendingPoint Holdings LLC, which is a wholly owned subsidiary of LendingPoint Consolidated, Inc. The company currently offers two different loan products: DTC and point of need (“PON”) ; however, only DTC loans will be included in LPPT 2022-ST4. DTC loans are typically used by borrowers for debt consolidation or credit card refinancing, to pay for home improvements, or to make a major purchase, while PON loans are used to finance a purchase at one of authorized dealers of the Company.
KBRA applied its ABS Global Rating Methodology for Consumer Lending, its Global Structured Finance Counterparty Methodology and its ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and credit structure. proposed capital. KBRA reviewed its operational review of LendingPoint, as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.
Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine the credit rating are available in the information disclosure form(s) located here.
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Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.
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