NEW YORK–(BUSINESS WIRE) – KBRA assigns preliminary ratings to three classes of notes that will be issued from Mission Lane Credit Card Master Trust, Series 2022-A (“MLANE 2022-A”), a credit card ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 28.00% for the Class A notes to 8.00% for the Class C notes. Credit enhancement on the notes consists of excess spread generated by the pool of credit card receivables, overcollateralization, subordination (except for the Class C Notes), and a reserve account (if funded after closing).
MLANE 2022-A represents Mission Lane LLC’s (“Mission Lane” or the “Company”) second term ABS transaction. MLANE 2022-A will include a two-year revolving period where no principal payments will be made on the notes unless an Early Amortization Event occurs. The receivables in MLANE 2022-A are generated by accounts initially owned by Transportation Alliance Bank Inc. (“TAB Bank,” the “initial Account Owner” or the “Originating Bank”). TAB Bank is a federally insured Utah state-chartered bank headquartered in Ogden, Utah.
Mission Lane, formerly a division of LendUp Loans LLC (“LendUp”), is a fintech company founded in 2018 as a Utah limited liability company. The Company provides services to support the Mission Lane Program, its general-purpose credit card program under the Visa brand. These services include marketing, underwriting, and servicing credit card accounts. Mission Lane currently has over 550 employees who work remotely and from offices in San Francisco, California and Richmond, Virginia.
KBRA applied its Credit Card 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 and the proposed capital structure. KBRA considered its operational review of Mission Lane as well as periodic update calls with the Company. Operative agreements and legal opinions for the transaction will be reviewed prior to closing.
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Further information on key credit considerations, sensitivity analyzes 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.
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