KBRA Assigns Preliminary Ratings to Avant Credit Card Master Trust, Series 2021-1

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Avant Credit Card Master Trust (“AVCCT 2021-1”), a credit card ABS transaction. The ratings reflect the initial credit enhancement levels ranging from 27.54% for the Class A notes to 2.85% for the Class D notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, the reserve account, and excess spread.

AVCCT 2021-1 is Avant, LLC’s (“Avant”) inaugural credit card securitization. The transaction will include a three-year revolving period where no principal payments will be made on the notes unless an Early Amortization Event occurs. The receivables in AVCCT 2021-1 are generated by accounts owned by WebBank (the “Account Owner” or the "Originating Bank”). WebBank is a federally insured, state-chartered industrial bank headquartered in Salt Lake City, Utah, with whom Avant has a longstanding strategic partnership. WebBank originates credit card accounts through the Avant Program, supported by Avant’s technology and customized scoring models.

Founded in 2012, Avant is a Chicago, Illinois-based online provider of credit products that include personal installment loans (offered through the Avant Platform) and credit cards to non-prime consumers. Avant has originated over $7 billion in personal loans through the Avant Platform since its inception. Avant began originating credit cards in 2017 and had over 460,000 active credit card accounts with a principal balance of $183.3 million as of July 31, 2021.

KBRA applied its Credit Card 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 and the proposed capital structure. KBRA considered its operational review of the Company, which was conducted in February 2019. Operative agreements and legal opinions for the transaction will be reviewed prior to closing.

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Related Publications

• Credit Card 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 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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