KBRA Assigns Preliminary Rating to Mariner Finance Issuance Trust 2024-A

NEW YORK-KBRA assigns a preliminary rating to one class of notes issued from Mariner Finance Issuance Trust 2024-A (“MFIT 2024-A”), a personal loan asset-backed securities transaction.

MFIT 2024-A will issue five classes of notes totaling $300 million. The notes are expected to be collateralized by at least $343.453 million of secured and unsecured, fixed-rate, personal loans originated by Mariner Finance, LLC, (“Mariner” or the “Company”) at closing. The preliminary rating reflects the initial credit enhancement level of 43.50% for the Class A notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread. This transaction includes a three-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. MFIT 2024-A is Mariner’s first consumer loan, term ABS securitization issued in 2024. Mariner has previously issued nine public and one private consumer loan securitizations since 2017.

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, 2024, has 516 branches across 27 states servicing over 727,000 active customers. Mariner reported a positive net income for the first quarter of 2024 and had an outstanding portfolio balance of $3.1 billion as of June 30, 2024.

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.

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Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

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.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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