Press Release|ABS
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KBRA Affirms and Upgrades Ratings from Marlette Funding Trusts

12 Feb 2026   |   New York

Contacts

KBRA affirms its ratings on 13 classes of notes and upgrades its ratings on seven 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 January 2026 distribution date (December 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 were 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 September 30, 2025, with the exception of 2020 when it incurred a net loss, mainly due to lower origination volume. As of September 30, 2025, Best Egg had $280 million in stockholders’ equity. Best Egg had $550.0 million in multi-year revolving credit facilities with $529.0 million in uncommitted borrowing capacity. In October 2025, Best Egg announced that they have entered into an agreement to be acquired by Barclays US Consumer Bank.

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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