KBRA Assigns Preliminary Ratings to Consumer Loan Underlying Bond (CLUB) Credit Trust 2019-P2

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Consumer Loan Underlying Bond (CLUB) Credit Trust 2019-P2 ("CLUB 2019-P2"). This is a $287.80 million consumer loan ABS transaction.

This transaction is LendingClub Corporation's ("LendingClub" or the "Company") eleventh rated sponsored securitization and the eighth sponsored securitization consisting of prime unsecured consumer loans facilitated by LendingClub's 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. Overall, KBRA has rated twelve other securitizations whose origination was facilitated by the LendingClub Platform.

The LendingClub Platform was launched in 2007 and is operated by LendingClub. 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 LendingClub Platform currently offers an array of products including unsecured personal installment loans to super prime, prime and near prime customers, patient and education financing, and auto loans.

The transaction has initial credit enhancement levels of 35.76%, 23.53% and 7.66% 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 and its Global Structured Finance Counterparty Methodology as part of its analysis of the transaction's underlying collateral pool, the proposed capital structure and Lending Club's historical gross loss data. KBRA also conducted an operational assessment of the Lending Club Platform, 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.

To access ratings, reports and disclosures, click here.

 

Preliminary Ratings Assigned: Consumer Loan Underlying Bond (CLUB) Credit Trust
2019-P2

Class

Preliminary Rating

Initial Class Principal

A

A+ (sf)

$200,700,000

B

A- (sf)

$37,900,000

C

BB (sf)

$49,200,000

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. KBRA is also 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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