KBRA assigns preliminary ratings for SoFi Consumer Loan Program 2021-1 Trust
NEW YORK–(BUSINESS WIRE) – The Kroll Bond Rating Agency (KBRA) issues preliminary ratings for four classes of debt securities funded by the SoFi Consumer Loan Program 2021-1 Trust (âSCLP 2021-1â), a US 232.5 million asset-backed securities transaction Dollars, have been spent. The preliminary ratings reflect initial credit enhancement rates of 25.67% for the Class A bonds, 20.39% for the Class B bonds, 13.95% for the Class C bonds, and 7.47% for the Class D bonds contrary. The credit enhancement consists of overcollateralization, subordination of subordinated bond classes (with the exception of class D notes), a cash reserve account and an excess spread.
SoFi Lending Corp. (âSoFiâ, the âSponsorâ or the âCompanyâ) is a California-based consumer finance company founded in 2012 as a wholly owned subsidiary of Social Finance, Inc. Social Finance, Inc. was founded in. Founded in May 2011 by alumni of the Stanford Graduate School of Business to refinance private student loans for doctoral students. Since then, the company has refined its student loan model to high credit borrowers, adding personal loans, credit cards, mortgages, investments, and banking to its product offerings. The company’s premier credit product, a personal loan product, was launched in 2015.
SoFi Personal Loans are unsecured, fixed-rate, consumer loans with an initial principal of $ 5,000 to $ 100,000 and an initial maturity of two to seven years. As of August 22, 2021 (the “Record Date”), the Borrowers’ Weighted Average Annual Income, FICO, and Monthly Free Cash Flow (“FCF”) in the SCLP 2021-1 collateral pool are $ 164,808, $ 753 and $ 6,248, respectively. Based on the current equity balance, 78.8% of borrowers in SCLP 2021-1 are homeowners. SoFi does not charge issuing fees or prepayment penalties for any of its products.
KBRA has applied its ABS Consumer Credit Global Rating Methodology and its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of SoFi’s underlying collateral pool, proposed capital structure and historical static pool data. KBRA considered its operational review of SoFi as well as regular update discussions with the company. Company agreements and legal opinions are checked before they are concluded.
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Learn more about key credit considerations, sensitivity studies that take into account what factors may affect those credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (if they are a material factor in changing creditworthiness or the rating outlook). ) can be found in the full assessment report above.
A description of all material material sources that were used to establish the rating and information about the methodology (s) (including any material models and sensitivity analyzes of the relevant material rating assumptions, if applicable) that were used in determining the rating is available Information Disclosure Form (s) can be found here.
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Further information on this rating measure can be found in the information disclosure forms mentioned above. For more information on KBRA guidelines, methods, rating scales and indications, please visit www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered as an NRSRO with the Securities and Exchange Commission. 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 under the temporary registration regime. In addition, KBRA has been named by the Ontario Securities Commission as the designated rating organization for issuers of asset-backed securities for the submission of a short prospectus or shelf prospectus. KBRA is also recognized as a credit rating provider by the National Association of Insurance Commissioners.