Press Release|ABS
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KBRA Downgrades and Affirms Ratings for LendingPoint Asset Securitization Trusts

15 May 2026   |   New York

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KBRA downgrades its ratings on six classes of notes and affirms its ratings on four classes of notes issued from six LendingPoint Asset Securitization Trust (“LP”) ABS transactions collateralized by unsecured consumer loans through LendingPoint’s direct to consumer (“DTC”) product. Of the four affirmations, one remains at CCC (sf) as it is susceptible to loss over the remaining term of the transaction, and three remain at C (sf) as they continue to exhibit an increased risk of principal loss and susceptibility to continued and future interest shortfalls with LP 2022-A Class E and LP 2022-C Class E Notes having not received interest payments since June 2024 distribution date. The remaining six rating actions are all downgrades, which are reflective of continued credit support erosion and the performance of the underlying collateral. Of the downgrades, LP 2020-REV1 Class D, LP 2021-A Class D, LP 2021-B Class D, LP 2022-A Class D and the LP 2022-B Class C notes are being lowered to C (sf) as KBRA anticipates an upcoming missed interest payment or projects a future principal loss. At this time, all of the classes rated CCC (sf) and below are not expected to maintain timely interest payments. The data used for this review is as of the April 2026 distribution date (March 2026 collection period).

In performing its rating review, KBRA utilized its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty 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 LendingPoint Asset Securitization Trust ABS Comprehensive Surveillance Dashboard.

One LendingPoint Pass-Through Trusts 2022-ST4 DTC transaction and one LP LMS 2023-1 transaction collateralized by LendingPoint’s point of need (“PON”) product are not included in this review. Please see LendingPoint Pass-Through Trust Comprehensive Surveillance Dashboard and LP LMS 2023-1 Asset Securitization Trust Surveillance Report for additional information on those transactions.

LendingPoint was founded in July 2014 and is a wholly owned subsidiary of LendingPoint Holdings LLC, which is a wholly owned subsidiary of LendingPoint Consolidated, Inc. KBRA has reviewed the financials of LendingPoint Consolidated, Inc. As noted in prior KBRA reports, the Company underwent a servicing platform transfer in August 2023, which caused an increase in delinquencies followed by a higher rate of charge-offs. In addition, the Company reduced the number of modifications during the system transfer. Since that time, modifications have returned to historical levels as outlined in the prior report. In September 2023, Warburg Pincus, a prior investor in LendingPoint, injected additional funds, gained a seat on the board of directors, and obtained majority control.

Since 2023, the Company has experienced several management changes, including transitions in the CEO, CFO, CTO, CRO, and General Counsel roles. The Company’s CFO assumed the dual role of interim CEO and CFO in August 2025 and was appointed permanent CEO effective March 2026. He will continue to act as interim-CFO until a full-time replacement joins the company. A new CTO also joined the Company in April 2026. In March 2026, the Company also implemented a workforce reduction of approximately 10%. The Company also went through a restructuring that led to additional warehouse capacity, additional subordinated debt, and other liquidity from its lenders.

LendingPoint uses its proprietary credit scoring models to assess the credit risk of applicants. The Company has offered two different loan products: DTC and PON; however, only DTC loans are included in the LP transactions. The Company exited the PON business line at the end of 2023 to focus on the DTC business. DTC loans are unsecured consumer loans typically used by the borrowers for either debt consolidation or credit card refinancing, to pay for a home improvement or to make a major purchase, while PON loans are used to finance a purchase at one of the Company’s approved merchants.

LendingPoint is the servicer for the transactions. Should LendingPoint be terminated as servicer, servicing responsibilities will be transferred to the backup servicer, Vervent Inc (“Vervent”). Vervent is an established backup servicer in the consumer ABS sector. As a backup servicer, Vervent conducts periodic on-site visits, receives monthly pool data, and confirms certain data on the monthly servicer reports. While change in servicer may result in a disruption in collections and modifications in how loans are serviced and payments are processed, Vervent’s ongoing involvement and preparedness as the backup servicer could limit the impact of a servicing disruption in the event of a servicing transfer.

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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