NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of Oportun Funding VI, LLC, Series 2017-A (“Oportun 2017-A”), a consumer loan asset-backed securities transaction.
The collateral in the Oportun 2017-A deal includes approximately $188.24 million of loans, as of the April 12, 2017 statistical calculation date. The transaction includes a three 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 and has recently expanded this product to other underserved borrowers. Oportun operates through 234 retail branches in California, Texas, Illinois, Nevada, Utah and Arizona. In addition, the Company began offering loans via their mobile website in Missouri and New Mexico on April 10, 2017 and April 19, 2017, respectively.
KBRA applied its U.S. Consumer Loan ABS 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 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 VI, LLC, Series 2017-A
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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).