KBRA awards preliminary assessment for Upstart Pass-Through Trust, Series 2021-ST5
NEW YORK–(BUSINESS WIRE) – Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to a class of debt securities issued by Upstart Pass-Through Trust, Series 2021-ST5 (“UPSPT 2021-ST5”), an ABS consumer credit transaction of $ 68.50 million has been spent. The rating reflects an initial credit improvement of 31.50%. The credit enhancement consists of overcollateralization, excess spread and a cash reserve.
This transaction represents the 23rdapprox The ABS Securitization Secured by Unsecured Consumer Credit was issued through the online platform operated by Upstart Network, Inc. (“Upstart” or the “Company”) and the eleventh series of Upstart Pass-Through Trust (“UPSPT”, “Master “) Awarded trust”) program. Upstart was founded in February 2012 and operates an online platform (www.upstart.com) and a white label technology licensing service (collectively the “Upstart Platform” or the “Platform”) with which financial institutions and other potential partners Can take advantage of Upstart online application process, machine learning credit model, review process and other technologies to provide credit according to their own underwriting standards.
The Upstart platform currently offers fixed-rate, monthly amortization unsecured consumer loans with initial balances of $ 1,000 to $ 50,000, credit terms of either three, five, or seven years, and fixed annual percentages (“APRs”). On the statistical reference date of the May 17, 2021 series, the pool had a weighted average effective annual interest rate of 22.77%.
KBRA applied its Global Rating Methodology for Consumer Loan ABS and the Global Structured Finance Counterparty Methodology to analyze portfolio pool data, underlying collateral pool and capital structure. KBRA reviewed Portport’s operational reviews and regular due diligence with the company. Company agreements and legal opinions are checked before they are concluded.
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Kroll Bond Rating Agency, LLC (KBRA) is a full-service rating agency registered with the US Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency 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 is named by the Ontario Securities Commission as a designated rating organization for issuers of asset-backed securities for the purpose of filing a short prospectus or a shelf prospectus. KBRA is also recognized as a rating provider by the National Association of Insurance Commissioners.