KBRA Assigns a Preliminary Rating to LendingPoint Pass-Through Trust, Series 2022-ST2

NEW YORK--(BUSINESS WIRE)--KBRA assigns a preliminary rating to one class of notes issued by LendingPoint Pass-Through Trust, Series 2022-ST2 (“LPPT 2022-ST2”), a $42.0 million consumer loan ABS transaction. The rating reflects initial credit enhancement of 30.00%. Credit enhancement consists of overcollateralization and excess spread.

This transaction represents the ninth KBRA-rated securitization collateralized by unsecured consumer installment loans originated through the online platform operated by LendingPoint LLC (“LendingPoint” or the “Company”) and the second series issued from the LendingPoint Pass-Through Trust (“LPPT”) program. Founded in July 2014, LendingPoint is a wholly owned subsidiary of LendingPoint Holdings LLC, which is a wholly owned subsidiary of LendingPoint Consolidated, Inc. The Company currently offers two different loan products: direct to consumer (“DTC”) and point of sale (“POS”); however, only DTC loans will be included in LPPT 2022-ST2. DTC loans are typically used by the borrowers for either debt consolidation or credit card refinancing, to pay for a home improvement or to make a major purchase while POS loans are used to finance a purchase at one of the Company’s approved merchants.

KBRA applied its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA considered its operational review of LendingPoint, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

• Consumer Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.