KBRA assigns preliminary ratings to Avant Loans Funding Trust 2021-REV1
NEW YORK–(BUSINESS WIRE) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five categories of notes issued by Avant Loans Funding Trust 2021-REV1 (“AVNT 2021-REV1”), a security operation backed by consumer loan assets of $ 200 million. The preliminary ratings reflect the initial level of credit enhancement ranging from 46.56% to 1.50% for Class A to E Notes. Credit Enhancement consists of overcollateralisation, subordination in the case of Class A Notes. , Category B, Category C and Category D and a funded reserve account at closing.
This transaction represents the eleventh rated securitization of Avant, LLC (“Avant”, the “Servicer” or the “Company”) secured by a certificate of trust backed by unsecured consumer loans from its lending platform on the online market (“Avant Platform”). Founded in 2012, Avant is located in Chicago, Illinois and operates an online lending platform. Personal installment loans are mainly offered to non-privileged consumers through the Avant platform. Typical clients have FICO scores between 550 and 720. Loans have an initial term of between 24 and 60 months, an initial balance between $ 2,000 and $ 35,000, and a fixed APR between 9.95% and 35.95. % according to the risk profile of the borrower and the duration of the loan. The Avant platform charges borrowers administration fees ranging from 1.50% to 4.75%. The main purposes of loans are debt consolidation, emergency expenses, life events, or auto repair. In 2020, $ 458 million came from the Avant platform, up from $ 1.1 billion (-59%) in 2019. As of December 31, 2020, approximately $ 7.0 billion in loans came from the platform Before in the United States.
Avant issued three securitizations in 2016, two in 2017, two in 2018, two in 2019 and one in 2020. Each of the ten securitizations was rated by KBRA. There were also four prior unrated securitizations, in which Avant or Avant institutional investors were the sponsors and the collateral were unsecured consumer loans from the Avant platform.
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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 CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as CRA with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is designated as a designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.