NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five categories of notes issued by Mariner Finance Issuance Trust 2021-B (MFIT 2021-B), an asset-backed personal securities lending transaction.
MFIT 2021-B will issue five classes of notes totaling $ 325 million. The Notes are secured by approximately $ 361 million of secured and unsecured fixed rate personal loans issued by Mariner Finance, LLC (âMarinerâ or the âCompanyâ) as of the statistical deadline of September 30, 2021. Preliminary ratings reflect the initial credit enhancement levels of 43.30% for Class A Notes, 33.10% for Class B Notes, 27.10% for Class C Notes, 20.35% for Class Notes D and 10.50% for Class E Notes. Credit Enhancement consists of overcollateralisation, subordination of junior note classes, cash reserve account and excess margin.
Mariner was founded in 2002 and is currently a 100% subsidiary of MF Raven Holdings, Inc. (âMF Ravenâ) which in turn is 100% owned by WP Raven Acquisition, LLC (âWP Ravenâ) . Mariner is indirectly owned by private equity funds managed by Warburg Pincus, LLC through WP Raven. The company, along with its affiliates, is headquartered in Baltimore, Maryland, and as of September 30, 2021, it had 484 branches in 25 states serving more than 671,223 active customers.
KBRA applied its ABS global consumer credit rating methodology and its structured finance global counterparty methodology as part of its analysis of the collateral pool underlying the transaction, the proposed capital structure and historical data on Mariner’s annualized gross losses. KBRA also conducted an operational assessment of Mariner, as well as a review of the legal structure of the transaction and transaction documents. KBRA will also review the operational agreements and legal opinions of the transaction prior to closing.
Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine the credit rating are available in the information disclosure form (s) located here.
Information about the meaning of each rating category can be located here.
Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures can be found at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.