KBRA Assigns Preliminary Ratings to Mariner Finance Issuance Trust 2022-A
KBRA assigns preliminary ratings to five classes of notes issued from Mariner Finance Issuance Trust 2022-A (MFIT 2022-A), a personal loan asset-backed securities transaction.
MFIT 2022-A will issue five classes of notes totaling $300 million. The notes are collateralized by approximately $357 million of secured and unsecured, fixed-rate, personal loans originated by Mariner Finance, LLC, ("Mariner" or the "Company") as of the August 31, 2022, Statistical Cut-Off Date. The preliminary ratings reflect the initial credit enhancement levels of 48.00% for the Class A, 38.00% for the Class B notes, 32.30% for the Class C notes, 25.95% for the Class D notes, and 16.40% for the Class E notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread. This transaction includes a two-year revolving period where additional collateral may be funded in the transaction so long as it complies with certain eligibility criteria and the resulting collateral pool, following any additions, is maintained within reinvestment criteria.
Mariner was founded in 2002 and is currently a wholly owned subsidiary of MF Raven Holdings, Inc. ("MF Raven") which, in turn, is indirectly wholly owned by WP Raven Acquisition, LLC ("WP Raven"). Mariner is indirectly owned by private equity funds managed by Warburg Pincus, LLC through WP Raven. The Company, together with its affiliates, is headquartered in Baltimore, Maryland and as of June 30, 2022, has 487 branches across 26 states servicing over 704,000 active customers. Mariner reported a positive net income for the first half of 2022 and had an outstanding portfolio balance of $2.7 billion as of June 30, 2022.
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 transaction's underlying collateral pool, the proposed capital structure and Mariner's historical annualized gross 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.
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.
Future Proofing Your Marketing Strategy
Keynote Presentation TBA
VoIP in Finance : How Bloomberg uses Asterisk to help Connect Finance Professionals