Kroll Bond Rating Agency Assigns Preliminary Ratings to Oportun Funding I, LLC, Series 2015-B

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of Oportun Funding I, LLC, Series 2015-B (“Oportun 2015-B”), a consumer loan asset-backed securities transaction.

The collateral in the Oportun 2015-B deal includes approximately $147.1 million of loans, as of the May 31, 2015 statistical cut off 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 150 retail branches in California, Texas and Illinois. It has recently expanded into Utah and is planning to expand to Nevada in 2015. In November 2009, the company was certified by the U.S. Treasury as a Community Development Financial Institution for serving the underbanked Hispanic community. Oportun has since been re-certified in October 2013 for an additional three years.

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 I, LLC, Series 2015-B, which was published today at www.kbra.com.

Preliminary Ratings Assigned: Oportun Funding I, LLC, Series 2015-B

Class       Rating       Expected Initial Class Principal
A       A(sf)       $102,942,000
B       BBB(sf)       $22,059,000
           

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled: Oportun Funding I, LLC, Series 2015-B Representations and Warranties Disclosure

Related Publications:
General Rating Methodology for Asset-Backed Securities

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 Contacts:
Kroll Bond Rating Agency
Rosemary Kelley, (646) 731-2337
rkelley@kbra.com
or
William Carson, (646) 731-2405
wcarson@kbra.com
or
David Shin, (646) 731-2459
dshin@kbra.com

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Rosemary Kelley, (646) 731-2337
rkelley@kbra.com
or
William Carson, (646) 731-2405
wcarson@kbra.com
or
David Shin, (646) 731-2459
dshin@kbra.com