KBRA Assigns Preliminary Ratings to Prosper Marketplace Issuance Trust, Series 2019-2

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Prosper Marketplace Issuance Trust 2019-2 (PMIT 2019-2). This is a $174.243 million consumer loan ABS transaction.

This transaction represents the twelfth securitization collateralized by unsecured consumer loans originated through the online marketplace lending platform operated by Prosper Funding LLC (Prosper or the “Company”) and the seventh from the Prosper Marketplace Issuance Trust (PMIT).

Founded in 2005, Prosper operates an online marketplace lending platform (www.prosper.com) (the “Prosper Platform” or the “Platform”), where personal installment loans are offered to prime and near prime customers. The loans in PMIT 2019-2 were all underwritten as Standard Product Loans under the WebBank and Prosper Credit Guidelines. The loans on the Platform are originated by WebBank, a Utah chartered Industrial Bank. The Prosper Platform offers fixed rate, fully amortizing unsecured consumer loans ranging from $2,000-$40,000, terms of 3 years and 5 years. Origination fees of 1%-5% are charged to the borrower based on the borrower’s risk profile and loan term. Since inception the Prosper Platform facilitated originations of over 1 million loans with an aggregate balance of $14 billion.

The transaction has initial credit enhancement levels of 43.87% for the Class A Notes, 27.71% for the Class B Notes, and 10.87% for the Class C Notes. Credit enhancement consists of excess spread, overcollateralization, subordination (in the case of the Class A, and Class B Notes) and a reserve account funded at closing.

KBRA applied its Global Consumer Loan ABS Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and the Prosper Platform’s historical gross loss data. In addition, KBRA also conducted an operational assessment of the Prosper Platform. KBRA also reviewed the operative agreements and legal opinions for the transaction prior to closing.

   

Preliminary Ratings: Prosper Marketplace Issuance Trust, Series 2019-2

 
Class   Rating   Initial Class Principal
A   A+ (sf)   $110,091,000
B   BBB (sf)   $31,411,000
C   BB- (sf)   $32,741,000
 

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

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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.

Contacts

Analytical Contacts:

Eric Neglia, Managing Director
(646) 731-2456
eneglia@kbra.com

Brendan Carter, Associate Director
(646) 731-3315
bcarter@kbra.com

Melvin Zhou, CFA, Director
(646) 731-2412
mzhou@kbra.com

Contacts

Analytical Contacts:

Eric Neglia, Managing Director
(646) 731-2456
eneglia@kbra.com

Brendan Carter, Associate Director
(646) 731-3315
bcarter@kbra.com

Melvin Zhou, CFA, Director
(646) 731-2412
mzhou@kbra.com