KBRA assigns preliminary ratings to five classes of notes issued by Prosper Marketplace Issuance Trust, Series 2023-1 (“PMIT 2023-1”), a $251.464 million consumer loan ABS transaction.

The ratings reflect initial credit enhancement levels of 40.50% for the Class A Notes to 9.35% for the Class E Notes. Credit enhancement consists of overcollateralization, subordination (in the case of the Class A, Class B, Class C and Class D Notes) a reserve account funded at closing, and excess spread.

Founded in 2005 and headquartered in San Francisco, CA, Prosper Funding LLC (“Prosper” or the “Company”) operates a marketplace for its online consumer installment loan program administered through www.prosper.com (the “Prosper Platform”). This transaction represents the first ABS securitization for the Company since PMIT 2019-4 and the tenth ABS issued from Prosper Marketplace Issuance Trust. During the nearly four years since the Company sponsored its last ABS deal, Prosper has facilitated the origination of over $7.5 billion in whole loans between January 1, 2020 and June 30, 2023. KBRA has rated the previous nine ABS transactions.

KBRA applied its Consumer Loan ABS Global Rating Methodology, 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. KBRA also conducted an operational assessment of the Prosper Platform, as well as a review of the transaction’s legal structure and transaction documents. Operative agreements and legal opinions will be reviewed prior to closing.

To access ratings and relevant documents, click here.

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Related Publications

• Consumer Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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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