KBRA assigns preliminary ratings to Credit Trust 2018-P2 of underlying consumer loan bonds (CLUB)

NEW YORK–() – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three categories of notes issued by Consumer Loan Underlying Bond (CLUB) Credit Trust 2018-P2 (“CLUB 2018-P2”). This is a $ 270.30 million consumer loan ABS transaction that is expected to close on September 27, 2018.

This transaction is a LendingClub Corporation (“LendingClub” or the “Company”) ranked seventh sponsored securitization of 2018 and the fourth sponsored securitization consisting of senior unsecured consumer loans facilitated by LendingClub’s proprietary technology platform supporting an online market that connects borrowers and investors by offering a variety of credit products initiated by issuing banks through the platform, www.lendingclub.com. Overall, KBRA has rated eight other securitizations (LendingClub Issuance Trust, Series 2016-NP2, Arcadia Receivables Credit Trust 2017-1, Consumer Loan Underlying Bond Credit Trust, 2017-NP1, Consumer Loan Underlying Bond Credit Trust, 2017-P1 , Consumer Loan Underlying Bond Credit Trust, 2017-P2, Consumer Loan Underlying Bond Credit Trust, 2017-NP2, Consumer Loan Underlying Bond Credit Trust, 2018-NP1 and Consumer Loan Underlying Bond Credit Trust, 2018-P1) which were created facilitated by the LendingClub platform.

The LendingClub platform was launched in 2007 and is operated by LendingClub. LendingClub has been a public company since its initial public offering in December 2014 and its shares are listed on the New York Stock Exchange under the symbol “LC”. The platform currently offers a range of products, including unsecured personal installment loans to super prime, prime and near prime customers, patient and education finance, auto refinance loans, and small business loans. .

The transaction has initial credit enhancement levels of 32.88%, 24.45% and 10.42% for the Class A, B and C notes, respectively. Credit enhancement consists of over-collateralization, subordination of junior grade grades, cash reserve account and excess margin.

KBRA applied its Global Consumer Loan ABS rating methodology as part of its analysis of the collateral pool underlying the transaction, the proposed capital structure and the historical Lending Club gross loss data. KBRA also conducted an operational assessment of the Lending Club platform, as well as a review of the legal structure of the transaction and transaction documents. KBRA will also review the operational agreements and legal opinions of the transaction prior to closing.

For more details on the analysis, please see KBRA’s pre-sale report, 2018-P2 Presale Report of the Bond Credit Trust Underlying Consumer Lending, which was posted today at www.kbra.com.

Preliminary Ratings Assigned: Consumer Loan Bond Credit Trust (CLUB) 2018-P2

Classify

Preliminary assessment

Principal expected from the initial class

A

A- (sf)

$

202,900,000

B

BBB (sf)

$

25,300,000

VS

BB (sf)

$

42 100,000

Declaration and Disclosure of Warranties

All nationally recognized statistical rating agencies are required, in accordance with SEC Rule 17g-7, to provide a description of the representations, warranties and mechanisms for executing a transaction that are available to investors. when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the available report here.

Related publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. 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, is recognized by the National Association of Insurance Commissioners in as a credit rating provider, and is a credit rating agency (CRA) certified by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a rating agency.



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