NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of Mariner Finance Issuance Trust 2020-A (MFIT 2020-A), a personal loan asset-backed securities transaction.
The financial impact of COVID-19 has resulted in high unemployment, which can adversely impact the performance of the transaction and consumer loans in general. Owing to this risk, KBRA increased its base case default assumptions for the subject pool in a manner that was similar to recent portfolio reviews of the sector. A review conducted in April 2020 resulted in six ratings from two MFIT securitizations being placed on Watch Status. The Watch Status Placements were maintained in a more recent review in July 2020, at which time the ratings on the most senior class in each securitization was affirmed. For more information on the reviews see U.S. Unsecured Consumer ABS Ratings Affirms and Maintains Watch Report and U.S. Unsecured Consumer