Kroll Bond Rating Agency (KBRA) assigns final ratings to three classes of notes issued by Consumer Lending Receivables Trust 2019-A (CLRT 2019-A). This is a $268.60 million consumer loan ABS transaction that closed on February 22, 2019 and was initially issued as unrated.
This transaction is LendingClub Corporations (LendingClub) ninth rated sponsored securitization and the sixth sponsored securitization consisting of prime unsecured consumer loans facilitated by LendingClubs proprietary technology platform supporting an online marketplace that connects borrowers and investors by offering a variety of loan products originated by issuing banks through the platform, www.lendingclub.com (the LendingClub Platform or the Platform) which launched in 2007. Overall, KBRA has rated ten other securitizations whose origination was facilitated by the LendingClub Platform.
LendingClub has been a public company since its IPO in December 2014 and its stock is listed on the New York Stock Exchange under the symbol LC. The Platform currently offers an array of products including unsecured personal installment loans to super prime, prime and near prime customers, patient and education financing, auto refinance loans and small business loans.
The transaction has initial credit enhancement levels of 33.90%, 25.34% and 10.74% for the Class A, Class B, and Class C notes, respectively. Credit enhancement is comprised of overcollateralization, subordination of the junior note classes, a cash reserve account and excess spread.
KBRA applied its Global Consumer Loan ABS Rating Methodology as part of its analysis of the transactions underlying collateral pool, the proposed capital structure and LendingClubs historical gross loss data. KBRA also conducted an operational assessment of the LendingClub Platform, as well as a review of the transactions legal structure and transaction documents. KBRA also reviewed the operative agreements and legal opinions for the transaction prior to closing.
Final Ratings Assigned: Consumer Lending Receivables Trust 2019-A
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Mikhalevsky, CFA, Director
Silverhardt, Senior Analyst
Kelley, Senior Managing Director