KBRA Assigns Preliminary Ratings to Prodigy Finance International Student Loan Securitisation

LONDON–(BUSINESS WIRE)–Kroll Bond Rating Agency UK Limited (KBRA) assigns preliminary ratings to Prodigy Finance CM 2021-1 DAC and Prodigy Finance CM2021-1 LLC, (together “Prodigy 2021-1” or the “Issuers”) $303.5 million securitisation of unsecured international student loans originated by Prodigy Finance Limited (“Prodigy”, the “Company” or the “Servicer”). This transaction is Prodigy’s first rated securitization collateralized by international private student loans. Prodigy 2021-1 will issue Class A Notes, Class B, Class C, Class D and Class R Notes (together, the “Notes”).

Prodigy is a student loan lender with headquarters in London, that began lending in 2007 to postgraduate students attending INSEAD, a private school in France. In 2011 Prodigy expanded its offering to students attending other European schools and in 2014 commenced lending to international students attending postgraduate programs in the US.

As of the statical cut-off date, 7 June 2021, the Prodigy 2021-1 collateral pool is comprised of 8,048 US dollar-based loans to 6,037 borrowers with an average loan size of $37,705, an average per borrower exposure of $50,265, a weighted average margin of 6.6% over the floating base rate resulting in a weighted average current interest rate of 6.7% and a weighted average remaining term of 12.9 years. Obligors with Indian citizenship comprise 44.4% of the pool and the next largest concentrations are Brazil at 9.7% and China at 5.3%. Prodigy estimates that 62.2% of the borrowers who are in the repayment stage currently reside in the US. 84.8% of the pool relates to loans taken out to fund postgraduate courses in the US.

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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.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

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 UK

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. Kroll Bond Rating Agency UK is located at Augustine House, Austin Friars, London, EC2N 2HA, United Kingdom.

Contacts

Analytical Contacts

John Hogan, Managing Director (Lead Analyst)

+44 208 148 1040

[email protected]

Killian Walsh, Director

+353 1 588 1124

[email protected]

Melvin Zhou, Senior Director

+1 (646) 731-2412

[email protected]

Adam DeJong, Associate Director

+1 (646) 731-2476

[email protected]

Eric Neglia, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2456

[email protected]

Business Development Contacts

Mauricio Noé, Co-Head of Europe

+44 208 148 1010

[email protected]

Miten Amin, Managing Director

+44 208 148 1002

[email protected]

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