KBRA Assigns Preliminary Rating to MPOWER Education Trust 2024-A
May 06 2024 - 2:00PM
Business Wire
KBRA assigns a preliminary rating to the Class A Notes issued by
MPOWER Education Trust 2024-A (“MPOWER 2024-A”), an asset-backed
securitization collateralized by private education loans made to
international students attending schools in the United States.
MPOWER 2024-A is the inaugural securitization of MPOWER Financing,
Public Benefit Corporation. The transaction is a term ABS
securitization collateralized by private education loans originated
by Bank of Lake Mills under the MPOWER Private Education Loan
Program.
MPOWER 2024-A will issue three classes of notes totaling $198.1
million, collateralized by $215.2 million of education loans.
MPOWER 2024-A has initial credit enhancement levels ranging from
32.88% for the Class A notes to 8.44% for the Class C notes. Credit
enhancement is comprised of overcollateralization, subordination of
junior note classes (except for the Class C notes), a cash reserve
account and excess spread.
Founded in 2014, MPOWER is a private education lender
headquartered in Washington, D.C. MPOWER’s product offering was
developed to address the difficulties for international students in
the U.S. and Canada to obtain education financing. The Company has
developed relationships with over 300 universities and colleges in
the U.S. and Canada, and provided education financing to over
13,000 students from over 100 countries.
KBRA applied its Private Student 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 portfolio pool data, underlying collateral pool and
capital structure. KBRA considered its operational reviews of
MPOWER, as well as due diligence calls with MPOWER. Operative
agreements and legal opinions will be reviewed prior to
closing.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: Private Student Loan ABS Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
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 www.kbra.com.
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. 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.
Doc ID: 1004121
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Analytical Contacts
Melvin Zhou, Managing Director (Lead Analyst) +1 646-731-2412
melvin.zhou@kbra.com
Juhi Paranjape, Senior Analyst +1 646-731-1340
juhi.paranjape@kbra.com
Vicky Xiao, Analyst +1 646-731-1422 vicky.xiao@kbra.com
Eric Neglia, Head of Commercial and Consumer ABS (Rating
Committee Chair) +1 646-731-2456 eric.neglia@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com