Kroll Bond Rating Agency Assigns Preliminary Ratings to Oportun Funding IV, LLC, Series 2016-C

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of Oportun Funding IV, LLC, Series 2016-C (“Oportun 2016-C”), a consumer loan asset-backed securities transaction.

The collateral in the Oportun 2016-C deal includes approximately $147.1 million of loans, as of the August 31, 2016 statistical calculation date. The transaction includes a two year revolving period during which additional collateral may be funded in the transaction so long as it complies with certain eligibility criteria. The preliminary ratings reflect the initial credit enhancement levels ranging from 30.0% for the Class A notes and 15.0% for the Class B notes.

Oportun Financial Corporation (formally known as Progreso Financiero Holdings, Inc.) is a consumer finance company founded in 2005 and headquartered in Redwood City, California. Oportun provides small dollar, unsecured installment loans predominantly to Hispanic borrowers with little or no credit history. Oportun operates through 205 retail branches in California, Texas, Illinois, Nevada, Utah and Arizona.

KBRA applied its General Rating 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 and net 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.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, Oportun Funding IV, LLC, Series 2016-C Presale Report, which was published today at www.kbra.com.

Preliminary Ratings Assigned: Oportun Funding IV, LLC, Series 2016-C

                     
Class         Rating         Expected Initial Class Principal
A         A(sf)         $102,943,000
B         BBB(sf)         $22,059,000

Related Publications:

General Rating Methodology for Asset-Backed Securities

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical:
Rosemary Kelley, 646-731-2337
Managing Director
rkelley@kbra.com
or
William Carson, 646-731-2405
Director
wcarson@kbra.com
or
Jenny Ovalle, 646-731-2309
Associate Director
jovalle@kbra.com
or
Ed Pagano, 646-731-2449
Analyst
epagano@kbra.com

Contacts

Analytical:
Rosemary Kelley, 646-731-2337
Managing Director
rkelley@kbra.com
or
William Carson, 646-731-2405
Director
wcarson@kbra.com
or
Jenny Ovalle, 646-731-2309
Associate Director
jovalle@kbra.com
or
Ed Pagano, 646-731-2449
Analyst
epagano@kbra.com