KBRA Assigns Preliminary Ratings to Oportun Issuance Trust 2024-1
31 Jan 2024 | New York
KBRA assigns ratings to four classes of notes issued by Oportun Issuance Trust 2024-1 (“Oportun 2024-1”), a $199.5 million consumer loan ABS transaction. Oportun 2024-1 is an amortizing ABS securitization with an initial collateral balance of approximately $210.0 million and collateralized by a discrete pool of unsecured and secured consumer installment loans originated by Oportun Financial Corporation (“Oportun” or the “Company”).
Oportun is a publicly traded, California based consumer finance company listed on the NASDAQ that provides financial services, including both unsecured and secured personal installment loans, to borrowers who do not have a credit score or who may have a limited credit history. The Company has been issuing unsecured consumer loans for 17 years and began offering a secured personal installment loan which are at least partially secured by an automobile title in 2020.
Oportun 2024-1 has initial credit enhancement levels of 31.72% for the Class A notes and 5.48% for the Class D notes. Credit enhancement consists of overcollateralization, excess spread, a non-declining cash reserve account and subordination (in the case of the Class A, Class B and Class C notes).
KBRA applied its Consumer 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 Oportun, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing
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