KBRA Assigns Preliminary Rating to Upstart Pass-Through Trust, Series 2021-ST6

Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to one class of notes issued by Upstart Pass-Through Trust, Series 2021-ST6 (“UPSPT 2021-ST6”), an $83.125 million consumer loan ABS transaction. The rating reflects initial credit enhancement of 33.50%. Credit enhancement consists of overcollateralization, excess spread and a cash reserve.

This transaction represents the 24^th ABS securitization collateralized by unsecured consumer loans originated through the online platform operated by Upstart Network, Inc. (“Upstart” or the “Company”) and the twelfth series of securities issued from the Upstart Pass-Through Trust (“UPSPT”, “Master Trust”) program. Upstart was established in February 2012 and operates an online platform (www.upstart.com) and a white label technology licensing service (collectively, the “Upstart Platform” or the “Platform”) that allows financial institutions and other potential partners to leverage Upstart’s online application flow, machine learning credit model, verification process and other technology to originate loans according to their own underwriting standards.

The Upstart Platform currently offers fixed rate, monthly amortizing unsecured consumer loans with original balances ranging from $1,000 - $50,000, loan terms of either three, five, or seven years and fixed annual percentage rates (“APRs”). As of the Series Statistical Cutoff Date, the pool has a weighted average APR of 23.21%.

KBRA applied its Consumer Loan ABS Global Rating Methodology, 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 Oportun, as well as periodic due diligence 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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