KBRA Assigns Preliminary Ratings to LL ABS Trust 2021-1

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by LL ABS Trust 2021-1 (“LLEND 2021-1”), an unsecured consumer loan ABS transaction.

LLEND 2021-1 will issue three classes of notes totaling $197.76 million, collateralized by a trust certificate backed by unsecured consumer loans. Credit enhancement consists of excess spread, overcollateralization, subordination (in the case of the Class A and Class B Notes) and a reserve account funded at closing.

This transaction represents Liberty Lending, LLC’s (“Liberty”) third rated securitization. Liberty was founded in 2015, is based in New York, NY and is an independent company that shares common ownership with National Debt Relief, LLC (“NDR”). Individual owners of NDR own the majority of Liberty, with the remaining equity interest distributed among Liberty’s management team and key employees. Liberty is the only lending platform used by NDR. The Company has been profitable starting in 2018 and through June 30, 2021. As of June 30, 2021, Liberty had $361 million in loan receivables outstanding in its managed portfolio.

KBRA applied its Global Consumer Loan ABS 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 and the proposed capital structure. KBRA also conducted an operational assessment of Liberty, as well as a review of the transaction’s legal structure and transaction documents. KBRA will review the operative agreements and legal opinions for the transaction prior to closing.

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

Related Publications

• Consumer Loan Global ABS 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 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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