KBRA Assigns Preliminary Rating to MPOWER Education Trust 2024-A
6 May 2024 | New York
KBRA assigns a preliminary rating to the Class A Notes issued by MPOWER Education Trust 2024-A (“MPOWER 2024-A”), an asset-backed securitization collateralized by private education loans made to international students attending schools in the United States. MPOWER 2024-A is the inaugural securitization of MPOWER Financing, Public Benefit Corporation. The transaction is a term ABS securitization collateralized by private education loans originated by Bank of Lake Mills under the MPOWER Private Education Loan Program.
MPOWER 2024-A will issue three classes of notes totaling $198.1 million, collateralized by $215.2 million of education loans. MPOWER 2024-A has initial credit enhancement levels ranging from 32.88% for the Class A notes to 8.44% for the Class C notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class C notes), a cash reserve account and excess spread.
Founded in 2014, MPOWER is a private education lender headquartered in Washington, D.C. MPOWER’s product offering was developed to address the difficulties for international students in the U.S. and Canada to obtain education financing. The Company has developed relationships with over 300 universities and colleges in the U.S. and Canada, and provided education financing to over 13,000 students from over 100 countries.
KBRA applied its Private Student Loan 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 portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of MPOWER, as well as due diligence calls with MPOWER. Operative agreements and legal opinions will be reviewed prior to closing.
To access rating and relevant documents, click here.
Click here to view the report.