KBRA Assigns Preliminary Rating to LendingPoint Pass-Through Trust Series 2022-ST3

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NEW YORK–(BUSINESS WIRE)–KBRA assigns a preliminary rating to a class of notes issued by LendingPoint Pass-Through Trust, Series 2022-ST3 (“LPPT 2022-ST3”), a $43.32 million consumer loan ABS transaction. The rating reflects an initial credit enhancement of 30.00%. Credit enhancement consists of overcollateralization and excess margin.

This transaction represents the tenth KBRA-rated securitization secured by unsecured consumer installment loans issued through the online platform operated by LendingPoint LLC (“LendingPoint” or the “Company”) and the third series issued by the LendingPoint Pass -Through Trust (“LPPT”). or “Master Trust”). Founded in July 2014, LendingPoint is a wholly owned subsidiary of LendingPoint Holdings LLC, which is a wholly owned subsidiary of LendingPoint Consolidated, Inc. The Company currently offers two different lending products: Direct to Consumer (“DTC”) and Point of sale (“POS”); however, only DTC loans will be included in LPPT 2022-ST3. DTC loans are typically used by borrowers for debt consolidation or credit card refinancing, to pay for home improvements, or to make a major purchase, while POS loans are used to finance a purchase at one of authorized dealers of the Company.

KBRA applied its ABS Global Rating Methodology for Consumer Lending, its Global Structured Finance Counterparty Methodology and its ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and credit structure. proposed capital. KBRA reviewed its operational review of LendingPoint, as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.

Click here to see the report. To access relevant notes and documents, click here.

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Disclosures

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

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine credit rating are available in the information disclosure form(s) located here.

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

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.

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