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Home>KBRA Assigns Preliminary Ratings to Oportun Funding VII, LLC, Series 2017-B

KBRA Assigns Preliminary Ratings to Oportun Funding VII, LLC, Series 2017-B

KBRA Assigns Preliminary Ratings to Oportun Funding VII, LLC, Series 2017-B

09/30/2017

KBRA Assigns Preliminary Ratings to Oportun Funding VII, LLC, Series 2017-B

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of Oportun Funding VII, LLC, Series 2017-B (“Oportun 2017-B”), a consumer loan asset-backed securities transaction.

The collateral in the Oportun 2017-B deal includes approximately $222.22 million of loans, as of the August 31, 2017 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 and 10.00% for the Class C note.

Oportun Financial Corporation is a consumer finance company founded in 2005 and headquartered in Redwood City, California. The Company provides unsecured installment loans to borrowers with little or no credit history who are underserved by traditional financial institutions. Oportun operates through 250 decentralized retail locations in California, Texas, Illinois, Nevada, Utah and Arizona. In addition, the Company began offering loans via their mobile website in Missouri and New Mexico in April 2017.

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

Preliminary Ratings Assigned: Oportun Funding VII, LLC, Series 2017-B

Class             Preliminary Rating             Expected Initial Class Principal
A             A+ (sf)             $155,550,000
B             BBB+ (sf)             $33,340,000
C             BB (sf)             $11,110,000
 

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled Oportun Funding VII, LLC, Series 2017-B Representations and Warranties Disclosure

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