KBRA Assigns Preliminary Ratings to Mariner Finance Issuance Trust 2022-A


NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to five classes of notes issued by Mariner Finance Issuance Trust 2022-A (MFIT 2022-A), a personal loan asset-backed securities transaction.

MFIT 2022-A will issue five categories of tickets totaling $300 million. The Notes are secured by approximately $357 million in fixed rate secured and unsecured personal loans issued by Mariner Finance, LLC (“Mariner” or the “Company”) as of August 31, 2022, the statistical cut-off date. Preliminary ratings reflect initial credit enhancement levels of 48.00% for Class A Notes, 38.00% for Class B Notes, 32.30% for Class C Notes, 25.95% for Class D Notes and 16.40% for Class E Notes. Credit enhancement includes overcollateralization, subordination of senior note classes, cash reserve account and excess spread. This transaction includes a two-year renewable period during which additional collateral may be funded into the transaction as long as it meets certain eligibility criteria and the resulting collateral pool, after any additions, is maintained within the eligibility criteria. reinvestment.

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, along with its affiliates, is headquartered in Baltimore, Maryland and, as of June 30, 2022, had 487 branches in 26 states serving more than 704,000 active customers. Mariner reported 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 ABS global rating methodology for consumer loans as well as its global structured financial counterparty methodology and its ESG global rating methodology as part of its analysis of the transaction’s underlying collateral pool, structure of proposed capital and historical annualized gross loss data of Mariner. 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 operational agreements and legal opinions of the transaction prior to closing.

Click on here to view the report. To access relevant notes and documents, click here.

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Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of key relevant rating assumptions, if any) used to determine credit rating are available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. Additionally, KBRA is designated as the Designated Rating Agency 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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