NEW YORK--(BUSINESS WIRE)--KBRA assigns a preliminary rating to one class of notes issued by LendingPoint Pass-Through Trust, Series 2022-ST3 (“LPPT 2022-ST3”), a $43.32 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 tenth KBRA-rated securitization collateralized by unsecured consumer installment loans originated through the online platform operated by LendingPoint LLC (“LendingPoint” or the “Company”) and the third series issued from the LendingPoint Pass-Through Trust (“LPPT” or “Master Trust”) 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-ST3. 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.
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- Consumer Loan ABS Global Rating Methodology
- Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
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.
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