NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to one class of notes issued by Morgan Stanley Resecuritization Pass-Through Trust 2018-SC1 (“MSRP 2018-SC1”). This transaction represents the securitization of the consumer loan asset-backed trust certificates issued by SoFi Consumer Loan Program 2015-1 Trust (“SCLP 2015-1”) and supported by a portfolio of prime unsecured personal loans (“Underlying Loans”) that were originated by SoFi Lending Corp (“SoFi”).
MSRP 2018-SC1 will issue one class of notes (“Class B Notes”) in an aggregate principal amount of $36,700,000. Payments to the Class B Notes are made from cashflows from the Underlying Loans after paying fees, expenses, indemnities and Class A interest and Class A principal in full accordance to the SCLP 2015-1 priority of payments then paying fees and expenses according to the MSRP 2018-SC1 priority of payments. As a result, the actual performance of the Underlying Loans and structural features of the MSRP 2018-SC1 will determine repayment of the Class B Notes. Initial credit enhancement for the Class B notes is 11.19% which consists of 7.75% overcollateralization, 2.65% SCLP 2015-1 Reserve Account and 0.79% Class B Reserve Account.
SCLP 2015-1 was initially issued as an unrated consumer loan asset backed transaction. At the request of SoFi, KBRA issued a public rating for SCLP 2015-1 on November 4, 2016. KBRA’s initial rating on the SCLP 2015-1 class A notes was A (sf) and has subsequently upgraded and affirmed the rating to AA+ (sf) on November 3, 2017. For more details, please refer to the New Issue and Surveillance reports linked below.
Preliminary Ratings Assigned: Morgan Stanley Resecuritization Pass-Through 2018-SC1
| Class | Preliminary Rating | Initial Class Principal | ||
| B | BBB (sf) | $36,700,000 |
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available here.
Related Publications: (available at www.kbra.com)
- Morgan Stanley Resecuritization Pass-Through 2018-SC1 Pre-Sale Report
- Global Consumer Loan ABS Rating Methodology
- SoFi Consumer Loan Program 2015-1 Surveillance Report
- SoFi Consumer Loan Program Comprehensive Surveillance Report
- SoFi Consumer Loan Program 2015-1 Surveillance Report
- SoFi Consumer Loan Program 2015-1 New Issue Report
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and 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.
