KBRA Assigns Preliminary Ratings to Oportun Funding X, LLC, Series 2018-C

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of Oportun Funding X, LLC, Series 2018-C (Oportun 2018-C), a consumer loan asset-backed securities transaction.

The collateral in the Oportun 2018-C deal includes approximately $263.16 million of loans, as of the September 20, 2018 statistical calculation date. The transaction includes a three-year revolving period during which additional collateral may be funded in the transaction so long as it complies with certain eligibility criteria. The preliminary ratings reflect the initial credit enhancement levels ranging from 30.0% for the Class A note, 15.0% for the Class B note, 10.00% for the Class C note and 5.0% for the Class D note.

Oportun Financial Corporation is a California based consumer finance company founded in 2005 and headquartered in San Carlos, California. The Company provides unsecured installment loans to borrowers who do not have a credit score, or who may have a limited credit history and are mis-scored, meaning that traditional credit scores do not properly reflect their credit worthiness. Oportun operates 283 decentralized retail locations in California, Texas, Illinois, Nevada, Utah, Arizona, New Mexico, and Florida. In addition, the Company offers loans via their mobile origination solution in Missouri, Wisconsin and Idaho and New Jersey on a mobile-first basis. The expansion is expected to continue throughout 2018/2019 into other geographic locations including South Carolina via their mobile origination solution.

KBRA applied its Global Consumer Loan ABS Rating Methodology for Asset-Backed Securities as part of its analysis of the transactions underlying collateral pool, the proposed capital structure and Oportuns historical gross loss data. KBRA also conducted an operational assessment of Oportun, as well as a review of the transactions legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

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Preliminary Ratings Assigned: Oportun Funding X, LLC, Series 2018-C

ClassPreliminary RatingInitial Class Principal
AA+ (sf)$184,213,000
BBBB+ (sf)$39,473,000
CBB (sf)$13,157,000
DB (sf)$13,157,000

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transactions representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRAs disclosure for this transaction can be found in the report available here.

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

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.

Analytical:
Kroll Bond Rating
Agency
Jenny Ovalle, Director
(646) 731-2309
[email protected]
or
William
Carson, Senior Director
(646) 731-2405
[email protected]
or
Michael
Polvere, Analyst
(646) 731-3339
[email protected]
or
Rosemary
Kelley, Senior Managing Director
(646) 731-2337
[email protected]

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