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KBRA Assigns Preliminary Ratings to SoFi Consumer Loan Program 2021-1 Trust

·4-min read

NEW YORK, September 27, 2021--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by SoFi Consumer Loan Program 2021-1 Trust ("SCLP 2021-1"), a $232.5 million consumer loan asset-backed securities transaction. The preliminary ratings reflect initial credit enhancement levels of 25.67% for the Class A notes, 20.39% for the Class B notes, 13.95% for the Class C notes, and 7.47% for the Class D notes. Credit enhancement consists of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account, and excess spread.

SoFi Lending Corp. ("SoFi", the "Sponsor" or the "Company") is a California based consumer finance company that was formed in 2012 as a wholly owned subsidiary of Social Finance, Inc. Social Finance, Inc. was started in May 2011 by Stanford Graduate School of Business alumni to refinance graduate students’ private student loans. Since this time, the Company has refined its student loan lending model to high credit quality borrowers and expanded its product offering to include personal loans, credit cards, mortgages, investing, and banking. The Company’s prime credit, personal loan product was launched in 2015.

SoFi’s personal loans are fixed rate, unsecured consumer loans with original principal balances ranging from $5,000 to $100,000 and original terms ranging from two years to seven years. As of the August 22, 2021 cut-off date ("Cut-Off Date"), the weighted average annual income, FICO, and monthly free cash flow ("FCF") of borrowers in the SCLP 2021-1 collateral pool are $164,808, 753, and of $6,248, respectively. By current principal balance, 78.8% of borrowers in SCLP 2021-1 are homeowners. SoFi does not charge origination fees or prepayment penalties on any of its products.

KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and SoFi’s historical static pool data. KBRA considered its operational review of SoFi as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

Click here to view the report. To access ratings and relevant documents, click here.

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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

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

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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.

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Analytical Contacts

Michael Pettigrew, Senior Analyst (Lead Analyst)
+1 (646) 731-1208

Hollie Reddington, Director
+1 (646) 731-3375

Brockton Bowers, Analyst
+1 (646) 731-2418

Eric Neglia, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2456

Business Development Contact

Ted Burbage, Managing Director
+1 (646) 731-3325

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