KBRA Assigns Preliminary Ratings to Mariner Finance Issuance Trust 2019-A

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of Mariner Finance Issuance Trust 2019-A (MFIT 2019-A), a personal loan asset-backed securities transaction.

The collateral in the MFIT 2019-A deal includes approximately $270 million of loans, as of April 30, 2019. The preliminary ratings reflect the initial credit enhancement levels of 27.50% for the Class A, 20.90% for the Class B notes, 15.25% for the Class C notes, and 8.05% for the Class D notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.

This transaction is the fourth securitization of consumer personal loans for Mariner Finance, LLC (“Mariner” or the “Company”). The collateral in the transaction will consist of secured and unsecured, fixed-rate, non-revolving personal loans. 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 MF USA Holdings, Inc., which in turn is wholly owned by WP Raven Acquisition, LLC (WP Raven). Mariner is principally owned by private equity funds managed by Warburg Pincus, LLC. The Company, together with its affiliates, is headquartered in Baltimore, MD and as of as of March 31, 2019, has 466 branches across 22 states serving over 633,900 active customers. As of March 31, 2019, Mariner’s average customer has an annual income of approximately $51,000, is 54 years old with approximately 49% homeowners who has been at their current residence for ten years.

KBRA analyzed the transaction using the Global Consumer Loan ABS Rating Methodology published on November 28, 2017 and the Global Structured Finance Counterparty Methodology published on August 8, 2018. KBRA’s consumer loan methodology incorporates an analysis of: (1) the underlying collateral pool, (2) the originator’s historical static pool data, segmented by characteristics including credit quality and product type, (3) the proposed capital structure for the transaction, (4) KBRA’s operational assessment of the originator and servicer and (5) the legal structure, transaction documents, and legal opinions.

In applying the methodology, KBRA analyzed Mariner’s static pool data and the underlying collateral pool. KBRA has performed an operational review of Mariner in August 2016 and September 2017 and has also reviewed its branch operations. KBRA stressed the capital structure based upon its stress case cash flow assumptions. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

Preliminary Ratings Assigned: Mariner Finance Issuance Trust 2019-A

Class

Preliminary Rating

Expected Initial Class

Principal

A

AA- (sf)

$197,400,000

B

A- (sf)

$17,850,000

C

BBB (sf)

$15,280,000

D

BB+ (sf)

$19,470,000

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

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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 Contacts:

William Carson, Senior Director

(646) 731-2405

[email protected]

Brendan Carter, Associate Director

(646) 731-3315

[email protected]

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