KBRA Assigns Preliminary Ratings to Prosper Marketplace Issuance Trust, Series 2024-1
18 Mar 2024 | New York
KBRA assigns preliminary ratings to four classes of notes issued by Prosper Marketplace Issuance Trust, Series 2024-1 (“PMIT 2024-1”), a $136.478 million consumer loan ABS transaction.
The ratings reflect initial credit enhancement levels of 29.85% for the Class A Notes to 8.85% for the Class D Notes. Credit enhancement consists of overcollateralization, subordination (in the case of the Class A, Class B and Class C Notes) a reserve account funded at closing, and excess spread.
Founded in 2005 and headquartered in San Francisco, CA, Prosper Funding LLC (“Prosper” or the “Company”) operates a marketplace for its online consumer installment loan program administered through www.prosper.com (the “Prosper Platform”). This transaction represents the second ABS securitization for the Company since PMIT 2019-4 and the eleventh ABS issued from Prosper Marketplace Issuance Trust. Prosper has facilitated the origination of over $7.5 billion in whole loans between January 1, 2020 and December 31, 2023. KBRA has rated the previous ten ABS transactions.
KBRA applied its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure. KBRA also conducted an operational assessment of the Prosper Platform, as well as a review of the transaction’s legal structure and transaction documents. Operative agreements and legal opinions will be reviewed prior to closing.
To access rating and relevant documents, click here.
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