KBRA Assigns Ratings to Avant Credit Card Master Trust, Series 2024-2
11 Oct 2024 | New York
KBRA assigns ratings to five classes of notes issued from Avant Credit Card Master Trust (the "Master Trust"), Series 2024-2 (“AVCCT 2024-2”), a credit card ABS transaction. The ratings reflect the initial credit enhancement levels ranging from 40.95% for the Class A notes to 3.40% for the Class E notes. Credit enhancement on the notes consists of overcollateralization, subordination (except for the Class E Notes), a cash reserve account if funded after closing, and excess spread.
AVCCT 2024-2 issued five classes of notes in an aggregate principal amount of $300.00 million and is collateralized by $310.56 million of credit card receivables. AVCCT 2024-2 includes an approximate two-year revolving period where no principal payments will be made on the notes unless an Early Amortization Event occurs. The receivables in the Master Trust are generated by accounts owned by WebBank (“WebBank”), a Utah-state chartered industrial bank. WebBank will act as an Originating Bank and Account Owner. Currently, five series have been issued out of the Master Trust.
Avant, LLC (“Avant” or the “Company”) is the Sponsor, Seller, Program Manager, Servicer and Administrator for AVCCT 2024-2. Founded in 2012, Avant is located in Chicago, Illinois and operates an online lending platform, which offers unsecured personal loans and credit cards primarily to non-prime consumers through its online marketplace lending platform Avant Platform. Avant has a strategic partnership with WebBank, whereby WebBank originates credit card accounts through the Avant Program.
KBRA applied its Credit Card ABS Global Rating Methodology as well as its 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 Avant as well as periodic update calls with the Company. Operative agreements and legal opinions for the transaction were reviewed prior to closing.
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