KBRA Affirms and Upgrades Ratings from Marlette Funding Trusts

KBRA affirms its ratings on 18 classes of notes and upgrades its ratings on eight classes of notes issued from 11 Marlette Funding Trust (“MFT”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the April 2025 distribution date (March 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying Marlette Funding Trust Comprehensive Surveillance Dashboard.

Founded in 2013 and headquartered 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). Marlette is a wholly owned subsidiary of Best Egg, Inc. (“Best Egg”).

The MFT securitizations primarily include unsecured consumer loans (“Prime loans”), and Best Egg Secured loans (“Secured loans”). The Prime loans and other products offered on the Platform are primarily originated by Cross River Bank and Blue Ridge Bank. Secured loans are personal loans secured by home fixtures as evidenced by a UCC-1 financing statement in the appropriate locale. Typical Prime customers have an average income of approximately $130,000 and an average FICO score of 725. Typical Secured loan customers have an average income of approximately $130,000 and an average FICO score of 730.

Based on financial statements provided to KBRA, Best Egg reported positive net income for 2017 through 2024, with the exception of 2020 when it incurred a net loss, mainly due to lower origination volume. As of December 31, 2024, Best Egg had $343 million in stockholders’ equity and a serviced portfolio of $10.0 billion as of April 30, 2025. Best Egg had $550.0 million in multi-year revolving credit facilities with $450.0 million in uncommitted borrowing capacity.

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Methodologies