NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Consumer Loan Underlying Bond (CLUB) Credit Trust 2018-P3 (“CLUB 2018-P3”). This is a $272.40 million consumer loan ABS transaction that is expected to close December 13, 2018.
This transaction is LendingClub Corporation’s (“LendingClub” or the “Company”) eighth rated sponsored securitization, fourth of 2018 and the fifth sponsored securitization consisting of prime unsecured consumer loans facilitated by LendingClub’s proprietary technology platform supporting an online marketplace that connects borrowers and investors by offering a variety of loan products originated by issuing banks through the platform, www.lendingclub.com. Overall, KBRA has rated nine other securitizations whose origination was facilitated by the LendingClub Platform.
The LendingClub Platform was launched in 2007 and is operated by LendingClub. LendingClub has been a public company since its IPO in December 2014 and its stock is listed on the New York Stock Exchange under the symbol “LC”. The Platform currently offers an array of products including unsecured personal installment loans to super prime, prime and near prime customers, patient and education financing, auto refinance loans and small business loans.
The transaction has initial credit enhancement levels of 30.87%, 22.80% and 9.70% for the Class A, Class B, and Class C notes, respectively. Credit enhancement is comprised of overcollateralization, subordination of the junior note classes, a cash reserve account and excess spread.
KBRA applied its Global Consumer Loan ABS Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Lending Club’s historical gross loss data. KBRA also conducted an operational assessment of the Lending Club Platform, 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: Consumer Loan Underlying Bond (CLUB) Credit Trust 2018-P3
| Class | Preliminary Rating | Expected Initial Class Principal | ||||
| A | A- (sf) | $208,900,000 | ||||
| B | BBB (sf) | $24,200,000 | ||||
| C | BB (sf) | $39,300,000 | ||||
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- ABS: Consumer Loan Underlying Bond (CLUB) Credit Trust 2018-P3 Pre-Sale Report
- Global Consumer Loan ABS Rating Methodology
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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, is 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.
