Market Overview

KBRA Assigns Preliminary Ratings to Prosper Marketplace Issuance Trust, Series 2018-2

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Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three
classes of notes issued by Prosper Marketplace Lending Issuance Trust
2018-2 ("PMIT 2018-2"). This is a $500.5 million consumer loan ABS
transaction.

This transaction represents the tenth securitization collateralized by
unsecured consumer loans originated through the online marketplace
lending platform operated by Prosper Funding LLC ("Prosper" or the
"Company").

Founded in 2005, Prosper operates an online marketplace lending platform
(www.prosper.com)
(the "Prosper Platform" or the "Platform"), where personal installment
loans are offered to prime and near prime customers. The loans in PMIT
2018-2 were all underwritten as Standard Product Loans under the WebBank
and Prosper Credit Guidelines. The loans on the Platform are originated
by WebBank, a Utah chartered Industrial Bank. The Prosper Platform
offers fixed rate, fully amortizing unsecured consumer loans ranging
from $2,000-$40,000, terms of three years and five years. Origination
fees of 1%-5% are charged to the borrower based on the borrower's risk
profile and loan term. Since inception the Prosper Platform facilitated
originations of over 1 million loans with an aggregate balance of $13
billion.

The transaction has initial credit enhancement levels of 39.50% for the
Class A Notes, 28.60% for the Class B Notes, and 9.50% for the Class C
Notes. Credit enhancement consists of excess spread,
overcollateralization, subordination (in the case of the Class A, and
Class B Notes) and a reserve account funded at closing.

KBRA applied its Global Consumer Loan ABS Methodology as part of its
analysis of the transaction's underlying collateral pool, the proposed
capital structure and the Prosper Platform's historical gross loss data.
In addition, KBRA also conducted an operational assessment of the
Prosper Platform. KBRA will also review the operative agreements and
legal opinions for the transaction prior to closing.

 

Preliminary Ratings: Prosper Marketplace Issuance Trust, Series
2018-2

Class     Preliminary Rating     Initial Class Principal
A     A+ (sf)     $335,500,000
B     BBB (sf)     $59,950,000
C     B+ (sf)     $105,050,000
       

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 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.

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