KBRA assigns preliminary ratings to five classes of notes issued by Avant Loans Funding Trust 2024-REV1 (“AVNT 2024-REV1”), an unsecured consumer loan ABS transaction. AVNT 2024-REV1 has initial hard credit enhancement level of 51.48% for the Class A Notes to 3.61% for the Class E Notes. Credit enhancement consists of overcollateralization, yield supplement overcollateralization, subordination (except for the Class E Notes), a cash reserve account funded at closing and excess spread.

This transaction represents Avant, LLC’s (“Avant”, or the “Company”) first rated securitization of 2024 and 15th overall. AVNT 2024-REV1 will issue five classes of notes totaling $200.0 million, collateralized by a trust certificate backed by unsecured consumer loans originated through Avant’s online marketplace lending platform (“Avant Platform”). The transaction has a three-month prefunding period, during which approximately an additional $9.2 million of loans will be acquired into the transaction. Additionally, during the two-year revolving period, which includes the 3-month prefunding period, additional loans will be acquired periodically.

Founded in 2012, Avant is located in Chicago, Illinois and operates an online lending platform, which offers unsecured personal loans and credit cards primarily to non-prime consumers through the Avant Platform. Avant’s typical unsecured personal loan borrowers have FICO scores between 550 and 720, an original term of 12 to 60 months, an original balance of $1,000 to $35,000, and a fixed APR of 9.95% to 36.00%. The Avant Platform charges an upfront administration fee to borrowers ranging from 1.50% to 9.99%. Loans are typically used for debt consolidation, emergency expenses, life event, or car repair purposes.

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 portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of Avant, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Methodologies

• ABS: Consumer Loan ABS Global Rating Methodology
• Structured Finance: 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. 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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