NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of Mariner Finance Issuance Trust 2017-A (MFIT 2017-A), a personal loan asset-backed securities transaction.
The collateral in the MFIT 2017-A deal includes approximately $252.2 million of loans, as of January 31, 2017. The preliminary ratings reflect the initial credit enhancement levels of 26.07% for the Class A, 18.22% for the Class B notes, and 11.8% for the Class C notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.
This transaction is the first securitization of consumer personal loans for Mariner Finance, LLC (“Mariner” or “the Company”). The collateral in the transaction will consist of secured and unsecured, fixed-rate, non-revolving personal loans. Mariner was founded in 2002 and is currently a wholly owned subsidiary of MF Raven Holdings, Inc. (“MF Raven”) which, in turn, is wholly owned by WP Raven Acquisition, LLC (“WP Raven”). Mariner is principally owned by private equity funds managed by Warburg Pincus, LLC. The Company is headquartered in Baltimore, MD and as of December 31, 2016, has over 300 branches across 22 states serving over 400,000 active customers. Mariner’s average customer has an annual household income of approximately $47,000, is 50 years old and a homeowner who has been at their current residence for ten years.
KBRA applied its General Rating Methodology for Asset-Backed Securities as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Mariner’s historical annualized loss data. KBRA also conducted an operational assessment of Mariner, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.
Preliminary Ratings Assigned: Mariner Finance Issuance Trust
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