NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by LL ABS Trust 2019-1 (“LLEND 2019-1”). This is a $153.5 million consumer loan ABS transaction that is expected to close on November 13, 2019.
This transaction represents Liberty Lending, LLC’s (“Liberty”) first rated securitization collateralized by a trust certificate backed by unsecured consumer loans. Liberty was founded in 2015 and is based in New York. Liberty 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 offers Express Settlement Loans (“E-Loans”) to consumers who are enrolled in a debt relief program administered by NDR and who have exhibited strong deposit behavior in NDR’s programs.
The transaction has initial credit enhancement levels of 36.60% for the Class A Notes, 24.35% for the Class B Notes, and 10.00% for the Class C Notes. 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 and subsequent periods.
KBRA applied its Global Consumer Loan ABS Rating Methodology and its Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Liberty’s historical gross loss data. KBRA also conducted an operational assessment and 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.
To access ratings, reports and disclosures, click here.
Preliminary Ratings Assigned: LL ABS Trust 2019-1
|
Class |
Preliminary Rating |
Expected Initial Class Principal |
|
A |
A (sf) |
$108,620,000 |
|
B |
BBB (sf) |
$20,660,000 |
|
C |
BB- (sf) |
$24,200,000 |
Related Publications: (available at www.kbra.com)
- Global Consumer Loan ABS Rating Methodology
- Global Structured Finance Counterparty Methodology
- LL ABS Trust 2019-1 Pre-Sale Report
- LL ABS Trust 2019-1 ABS KCAT
CONNECT WITH KBRA
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Contacts
Analytical:
Melvin Zhou, CFA, Director
(646) 731-2412
[email protected]
Rahel Avigdor, Director
(646) 731-1203
[email protected]
Eric Neglia, Managing Director
(646) 731-2456
[email protected]
Michael Polvere, Senior Analyst
(646) 731-3339
[email protected]
Business Development:
Ted Burbage, Managing Director
(646) 731-3325
[email protected]
