KBRA Assigns Preliminary Ratings to Marlette Funding Trust 2024-1
20 May 2024 | New York
KBRA assigns preliminary ratings to four classes of notes issued by Marlette Funding Trust 2024-1 (“MFT 2024-1”), a $321.220 million consumer loan ABS transaction.
The ratings reflect initial credit enhancement levels of 50.52% for the Class A Notes to 14.46% for the Class D Notes. Credit enhancement consists of overcollateralization, subordination (in the case of the Class A, B and C Notes) a reserve account funded at closing, and excess spread.
Founded in 2013 in Wilmington, DE, Marlette Funding, LLC (“Marlette”) operates an online marketplace lending platform, that offers personal installment loans under the Best Egg brand (www.BestEgg.com) (the “Marlette Best Egg Platform” or the “Platform”) that are included in this securitization. The Company has issued 25 securitizations since August 2016. Under the multi-seller securitization program, Marlette is the Sponsor and the collateral is contributed from Marlette and whole loan buyers of loans originated through the Platform.
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, the proposed capital structure. KBRA also conducted an operational assessment of the Marlette Platform, as well as a review of the transaction’s legal structure and transaction documents. Operative agreements and legal opinions will be reviewed prior to closing.
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