KBRA Assigns Preliminary Ratings to Avant Loans Funding Trust 2022-REV1
NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to five classes of bonds issued by Avant Loans Funding Trust 2022-REV1 (“AVNT 2022-REV1”), a $200 million consumer lending asset-backed securities transaction . The preliminary ratings reflect the initial level of credit enhancement ranging from 46.41% to 5.08% for the Class A to E notes. The credit enhancement consists of overcollateralization, subordination (except for the category E) and a funded reserve account at closing.
This transaction represents the twelfth securitization of Avant, LLC (“Avant”, the “Servicer” or the “Company”), secured by a certificate of trust backed by unsecured consumer loans issued through its platform online lending (“Avant Platform”). Founded in 2012, Avant is located in Chicago, Illinois and operates an online lending platform. Personal installment loans are offered primarily to non-preferred consumers through the Avant platform. Typical customers have FICO scores between 550 and 700. Loans have an initial term between 12 and 60 months, an initial balance between $1,000 and $35,000, and a fixed APR between 9.95% and 36.00% depending on the risk profile of the borrower and the duration of the loan. The Avant platform charges borrowers an administration fee ranging from 1.50% to 4.75%. The main purposes of loans are debt consolidation, emergency expenses, life events or car repairs.
KBRA applied its ABS Global Rating Methodology for Consumer Lending, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of portfolio pool data, collateral pool underwriting underlyings and capital structure. KBRA reviewed its operational reviews of Avant, as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.
Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned 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 key relevant rating assumptions, if any) used to determine the 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.
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.