ABS: Consumer Loan ABS Global Rating Methodology

Introduction

This document describes KBRA’s methodology for rating consumer loan asset-backed securities (“Consumer Loan ABS”). This includes transactions secured by collateral originated by traditional consumer loan companies, as well as through online consumer loan marketplace lending platforms (“MPL Platform”). KBRA’s rating of a Consumer Loan ABS transaction incorporates an analysis of: the quality and expected performance of the underlying collateral, the business model and operational capabilities of the originator, MPL Platform and servicer, and the transaction terms, including capital structure, credit enhancement and legal structure. KBRA assigns ratings to Consumer Loan ABS using its short-term and long-term rating scales depending on the securities being rated. For more information about KBRA’s rating scale, please see KBRA’s Rating Scale and Definitions.

When rating Consumer Loan ABS, KBRA analyzes…