A pool of unsecured consumer loans, which overcame an increase in default rates from recent pools, will provide collateral for $342.8 million in asset-backed securities (ABS) to be issued from the Oportun Issuance Trust, series 2025-B.
OPTN 2025-B, as the deal is known, will issue notes through five tranches of class A, B, C, D and E notes, which all have a legal final maturity of May 9, 2033, analysts at Fitch Ratings said. The A, B, C, D and E notes benefit from credit enhancement levels equaling 59.9%, 38.7%, 22.9%, 8.2% and 2.5% of their respective note balances.
The deal has a revolving period of about 24 months, when the deal can acquire additional receivables, a condition that could expose the deal to negative collateral shifts. Those new assets, however, must meet the transaction's eligibility requirements. Also, even with a shifting pool mix, concentration limits and other restrictions applied to the new assets give the overall deal a 15.2% base case default expectation, Fitch said.
OPTN 2025-B also put concentration limits on the collateral pool, and if those limits are exceeded for three consecutive months, will result I a rapid amortization event.
While Oportun plays several pivotal roles on the deal, as the loan originator, seller and the deal sponsor, PF Servicing will be on the transaction as servicer and administrator, Fitch said.
About 83,859 loans compose the collateral pool, and on a weighted average (WA) basis, they have an original term of 34 months, Fitch said. Renewal receivables account for 67.2% of the pool, and while that is the majority, it accounts for the lowest composition for those types of loans since OPTN 2022-A closed.
Rewritten loan account for 0.11% of the pool, which is lower than the prior transaction, the rating agency said.
Fitch assigned ratings of AAA, AA-, A-, BBB- and BB- to the A, B, C, D and E tranches, respectively.
