KBRA Assigns a Preliminary Rating to SoFi Consumer Loan Program 2022-1S Trust

KBRA assigns a preliminary rating to a single class of notes issued by SoFi Consumer Loan Program 2022-1S Trust (“SCLP 2022-1S”), a $440.0 million consumer loan asset-backed securities transaction. Credit enhancement is comprised of overcollateralization, a cash reserve account, and excess spread. SCLP 2022-1S has an initial credit enhancement level of 26.98% for the Class A notes.

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 October 16, 2022 cut-off date (“Cut-Off Date”), the collateral pool supporting the transaction has a weighted average seasoning of 27 months, a weighted average original term of 61 months, and a weighted average remaining term of 34 months. In addition, as of the loan origination date, the obligors had a weighted average annual income of $160,634, weighted average credit score of 753 and monthly free cash flow (“FCF”) of $6,207. 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.

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Related Publications

• Consumer Loan ABS Global Rating Methodology
• 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 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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