KBRA Assigns Preliminary Rating to SoFi Consumer Loan Program 2022-1S Trust

NEW YORK, November 10, 2022–(BUSINESS WIRE)–KBRA assigns a preliminary rating to a single class of bonds issued by SoFi Consumer Loan Program 2022-1S Trust (“SCLP 2022-1S”), an asset-backed securities transaction consumption of 440.0 million. Credit enhancement includes overcollateralization, cash reserve account and excess spread. SCLP 2022-1S has an initial credit enhancement level of 26.98% for Class A bonds.

SoFi Lending Corp. (“SoFi”, the “Sponsor” or the “Company”) is a California-based consumer finance company that was established in 2012 as a wholly owned subsidiary of Social Finance, Inc. Social Finance, Inc. was created in May 2011 by Stanford Graduate School of Business alumni to refinance private student loans for graduate students. Since then, the Company has refined its student loan model for high credit quality borrowers and expanded its product offering to include personal loans, credit cards, mortgages, investments and banking services. The Company’s premier personal credit product was launched in 2015.

SoFi Personal Loans are unsecured fixed rate consumer loans with initial principal balances ranging from $5,000 to $100,000 and initial terms ranging from two years to seven years. As of the cut-off date of October 16, 2022 (“cut-off date”), the collateral pool supporting the transaction has a weighted average term of 27 months, a weighted average initial term of 61 months and a weighted average remaining term. of 34 months. In addition, at the date the loan was granted, the debtors had a weighted average annual income of $160,634, a weighted average credit score of 753 and a monthly free cash flow (“FCF”) of $6,207. SoFi does not charge set-up fees or prepayment penalties on any of its products.

KBRA applied its global ABS rating methodology for consumer loans, as well as its global structured financial counterparty methodology and its global ESG rating methodology as part of its analysis of the underlying collateral pool of the transaction, the proposed capital structure and historical data of SoFi’s static pool. KBRA reviewed its operational review of SoFi as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.

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Further information on key credit considerations, sensitivity analyzes which look at factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a factor key to the change in credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of key relevant rating assumptions, if any) used to determine credit rating are available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. Additionally, KBRA is designated as the Designated Rating Agency 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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