KBRA Assigns Preliminary Ratings to Avant Loans Funding Trust 2024-REV1
July 18 2024 - 4:32PM
Business Wire
KBRA assigns preliminary ratings to five classes of notes issued
by Avant Loans Funding Trust 2024-REV1 (“AVNT 2024-REV1”), an
unsecured consumer loan ABS transaction. AVNT 2024-REV1 has initial
hard credit enhancement level of 51.48% for the Class A Notes to
3.61% for the Class E Notes. Credit enhancement consists of
overcollateralization, yield supplement overcollateralization,
subordination (except for the Class E Notes), a cash reserve
account funded at closing and excess spread.
This transaction represents Avant, LLC’s (“Avant”, or the
“Company”) first rated securitization of 2024 and 15th overall.
AVNT 2024-REV1 will issue five classes of notes totaling $200.0
million, collateralized by a trust certificate backed by unsecured
consumer loans originated through Avant’s online marketplace
lending platform (“Avant Platform”). The transaction has a
three-month prefunding period, during which approximately an
additional $9.2 million of loans will be acquired into the
transaction. Additionally, during the two-year revolving period,
which includes the 3-month prefunding period, additional loans will
be acquired periodically.
Founded in 2012, Avant is located in Chicago, Illinois and
operates an online lending platform, which offers unsecured
personal loans and credit cards primarily to non-prime consumers
through the Avant Platform. Avant’s typical unsecured personal loan
borrowers have FICO scores between 550 and 720, an original term of
12 to 60 months, an original balance of $1,000 to $35,000, and a
fixed APR of 9.95% to 36.00%. The Avant Platform charges an upfront
administration fee to borrowers ranging from 1.50% to 9.99%. Loans
are typically used for debt consolidation, emergency expenses, life
event, or car repair purposes.
KBRA applied its Consumer Loan ABS Global Rating Methodology, as
well as its Global Structured Finance Counterparty Methodology and
ESG Global Rating Methodology as part of its analysis of the
portfolio pool data, underlying collateral pool and capital
structure. KBRA considered its operational reviews of Avant, as
well as periodic update calls with the Company. Operative
agreements and legal opinions will be reviewed prior to
closing.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: Consumer Loan ABS Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. 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. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005171
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240718903281/en/
Analytical Contacts
Melvin Zhou, Managing Director (Lead Analyst) +1 646-731-2412
melvin.zhou@kbra.com
Brendan Buckley, Associate +1 646-731-1318
brendan.buckley@kbra.com
Dan DePaulo, Senior Analyst +1 646-731-1259
dan.depaulo@kbra.com
Hollie Reddington, Senior Director (Rating Committee Chair) +1
646-731-3375 hollie.reddington@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com