Upstart $320.005M consumer loan ABS premarketing

KBRA has assigned preliminary ratings to three classes of notes issued by Upstart Securitization Trust 2025-1 (“UPST 2025-1”), a $320.0 million consumer loan ABS collateralized by unsecured consumer loans. The preliminary ratings reflect initial credit enhancement levels of 42.60% for the Class A notes, 33.50% for the Class B notes, and 20.50% for the Class C notes. These enhancements include overcollateralization, excess spread, a non-declining cash reserve account, and subordination (excluding the Class C notes).

UPST 2025-1 marks the 45th ABS securitization backed by unsecured consumer loans originated through Upstart Network, Inc., a wholly owned subsidiary of Upstart Holdings, Inc. (NASDAQ: UPST). KBRA conducted its analysis using its Consumer Loan ABS Global Rating Methodology, along with its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. The agency also reviewed Upstart’s operational performance and will assess operative agreements and legal opinions prior to the transaction’s closing.

The securitization reflects the continued growth of Upstart’s lending platform, which offers unsecured personal loans, cash lines, and other credit products.