NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four categories of notes issued by Avant Credit Card Master Trust (âAVCCT 2021-1â), an ABS credit card transaction. Ratings reflect initial credit enhancement levels ranging from 27.54% for Class A Notes to 2.85% for Class D Notes. Credit Enhancement includes over-collateralization, subordination of junior grade classes, the reserve account and excess margin.
AVCCT 2021-1 is Avant, LLC’s (âAvantâ) first credit card securitization. The transaction will include a three-year revolving period during which no principal payment will be made on the Notes unless an Early Amortization Event occurs. Receivables in AVCCT 2021-1 are generated by accounts held by WebBank (the âAccount Ownerâ or the âHome Bankâ). WebBank is a state-chartered and federally insured industrial bank headquartered in Salt Lake City, Utah, with which Avant has a long-standing strategic partnership. WebBank creates credit card accounts through the Avant program, supported by Avant technology and custom scoring templates.
Founded in 2012, Avant is an online provider of credit products based in Chicago, Ill. That includes personal installment loans (offered through the Avant platform) and credit cards to non-privileged consumers. Avant has generated over $ 7 billion in personal loans through the Avant platform since its inception. Avant started creating 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 global ABS credit card rating methodology as well as its global structured finance counterparty methodology and ESG global rating methodology as part of its analysis of the underlying collateral pool of the transaction and structure. of proposed capital. KBRA has reviewed its operational review of the Company, which was completed in February 2019. Operational agreements and legal opinions relating to the transaction will be reviewed prior to closing.
Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might 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 about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine 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 information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures can be found at www.kbra.com.
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