KBRA Assigns Preliminary Ratings to Upstart Securitization Trust 2024-1
KBRA has assigned preliminary ratings to three classes of notes issued by Upstart Securitization Trust 2024-1, a $208.001 million consumer loan ABS backed by unsecured consumer loans. The preliminary ratings reflect initial credit enhancement levels of 45.50% for Class A notes, 35.50% for Class B notes, and 20.50% for Class C notes. This marks Upstart's 44th ABS securitization of unsecured consumer loans originated through its online platform. Credit enhancement includes overcollateralization, excess spread, a non-declining cash reserve account, and subordination.
KBRA ha assegnato valutazioni preliminari a tre classi di note emesse da Upstart Securitization Trust 2024-1, un ABS per prestiti al consumo da 208,001 milioni di dollari garantito da prestiti al consumo non garantiti. Le valutazioni preliminari riflettono i livelli iniziali di miglioramento creditizio del 45,50% per le note di Classe A, 35,50% per le note di Classe B e 20,50% per le note di Classe C. Questo segna la 44ª cartolarizzazione ABS di prestiti al consumo non garantiti di Upstart originati tramite la sua piattaforma online. Il miglioramento creditizio include collaterale in eccesso, spread eccedente, un conto di riserva di liquidità non in declino, e subordinazione.
KBRA ha asignado calificaciones preliminares a tres clases de notas emitidas por Upstart Securitization Trust 2024-1, un ABS de préstamos al consumo de 208,001 millones de dólares respaldado por préstamos al consumo no garantizados. Las calificaciones preliminares reflejan los niveles iniciales de mejora crediticia del 45,50% para las notas de Clase A, 35,50% para las notas de Clase B y 20,50% para las notas de Clase C. Esto marca la 44ª titulización ABS de préstamos al consumo no garantizados de Upstart originados a través de su plataforma en línea. La mejora crediticia incluye sobrecolateralización, margen excedente, una cuenta de reserva de efectivo no decreciente y subordinación.
KBRA는 Upstart Securitization Trust 2024-1이 발행한 세 가지 클래스의 노트에 대해 예비 평가를 부여했습니다. 이 2억 8백 1만 달러 규모의 소비자 대출 ABS는 무담보 소비자 대출을 기반으로 합니다. 예비 평가는 클래스 A 노트에 대해 45.50%, 클래스 B 노트에 대해 35.50%, 클래스 C 노트에 대해 20.50%의 초기 신용 강화 수준을 반영합니다. 이는 Upstart의 온라인 플랫폼을 통해 생성된 무담보 소비자 대출의 44번째 ABS 증권화를 기록합니다. 신용 강화는 초과 담보, 초과 수익, 감소하지 않는 현금 준비금 계좌 및 후순위 설계를 포함합니다.
KBRA a attribué des notations préliminaires à trois classes de titres émis par Upstart Securitization Trust 2024-1, un ABS de prêts à la consommation de 208,001 millions de dollars adossé à des prêts à la consommation non garantis. Les notations préliminaires reflètent des niveaux de renforcement du crédit initiatiques de 45,50% pour les titres de Classe A, 35,50% pour les titres de Classe B et 20,50% pour les titres de Classe C. Cela marque la 44e titrisation ABS de prêts à la consommation non garantis d'Upstart issus de sa plateforme en ligne. Le renforcement du crédit inclut la surcollatéralisation, un excédent de rendement, un compte de réserve de liquidités non déclinant et la subordination.
KBRA hat vorläufige Bewertungen für drei Klassen von Anleihen vergeben, die von Upstart Securitization Trust 2024-1 ausgegeben wurden, einem ABS für Verbraucherdarlehen im Wert von 208,001 Millionen Dollar, das durch ungesicherte Verbraucherdarlehen gesichert ist. Die vorläufigen Bewertungen spiegeln die anfänglichen Kreditverbesserungsniveaus von 45,50% für Klassen A-Anleihen, 35,50% für Klassen B-Anleihen und 20,50% für Klassen C-Anleihen wider. Dies markiert die 44. ABS-Verbriefung ungesicherter Verbraucherdarlehen von Upstart, die über ihre Online-Plattform initiiert wurden. Die Kreditverbesserung umfasst Überbesicherung, Überrendite, ein nicht sinkendes Cash-Reserven-Konto und Nachrangigkeit.
- Secured $208.001 million in ABS securitization
- Significant credit enhancement levels ranging from 20.50% to 45.50%
- Demonstrates continued access to securitization markets with 44th ABS deal
- None.
Insights
This
The credit enhancement structure, combining overcollateralization, excess spread, cash reserve and subordination, provides robust protection for investors. This securitization demonstrates Upstart's continued ability to access capital markets and monetize their loan originations, which is important for their business model and liquidity position.
The preliminary ratings reflect initial credit enhancement levels of
UPST 2024-1 represents the 44th ABS securitization collateralized by unsecured consumer loans originated through the online platform operated by Upstart Network, Inc. (“Upstart” or the “Company”), a
KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of Upstart, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
To access ratings and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: Consumer Loan ABS Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the
Doc ID: 1006521
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Analytical Contacts
Michael Polvere, Associate Director (Lead Analyst)
+1 646-731-3339
michael.polvere@kbra.com
Michael Williams, Associate
+1 646-731-1232
michael.williams@kbra.com
Vicky Xiao, Senior Analyst
+1 646-731-1422
vicky.xiao@kbra.com
Melvin Zhou, Managing Director (Rating Committee Chair)
+1 646-731-2412
melvin.zhou@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director
+1 646-731-2369
arielle.smelkinson@kbra.com
Source: Kroll Bond Rating Agency, LLC
FAQ
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