KBRA Assigns Preliminary Ratings to Mariner Finance Issuance Trust 2021-A

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes issued from Mariner Finance Issuance Trust 2021-A (MFIT 2021-A), a personal loan asset-backed securities transaction.

MFIT 2021-A will issue five classes of notes totaling $250 million. The notes are collateralized by approximately $273 million of secured and unsecured, fixed-rate, non-revolving personal loans originated by Mariner Finance, LLC, (“Mariner” or the “Company”) as of the January 31, 2021 Statistical Cut-Off Date. The preliminary ratings reflect the initial credit enhancement levels of 42.90% for the Class A, 30.40% for the Class B notes, 24.55% for the Class C notes, 18.20% for the Class D notes, and 8.90% for the Class E notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.

Mariner was founded in 2002 and is currently a wholly owned subsidiary of MF Raven Holdings, Inc. (“MF Raven”) which, in turn, is 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 December 31, 2020, has 478 branches across 25 states serving over 644,440 active customers.

KBRA applied its Consumer Loan ABS Global Rating Methodology and Global Structured Finance Counterparty 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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Related Publications

• Consumer Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty 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 pursuant to the Temporary Registration Regime. 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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