KBRA Assigns Preliminary Ratings to Upstart Securitization Trust 2025-3

Core Viewpoint - KBRA has assigned preliminary ratings to four classes of notes issued by Upstart Securitization Trust 2025-3, which is a $320 million consumer loan asset-backed security (ABS) collateralized by unsecured consumer loans [1][3]. Summary by Relevant Sections Ratings and Credit Enhancement - The preliminary ratings indicate initial credit enhancement levels of 56.45% for Class A notes, 43.50% for Class B notes, 33.30% for Class C notes, and 20.50% for Class D notes [2]. - Credit enhancement is composed of overcollateralization, excess spread, a non-declining cash reserve account, and subordination (excluding Class D notes) [2]. Company Background - UPST 2025-3 marks the 47th ABS securitization backed by unsecured consumer loans originated through Upstart Network, Inc., a wholly-owned subsidiary of Upstart Holdings, Inc. (NASDAQ: UPST) [3]. Methodology and Analysis - KBRA utilized its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology in analyzing the portfolio pool data, underlying collateral pool, and capital structure [4]. - The analysis included operational reviews of Upstart and periodic update calls with the company, with operative agreements and legal opinions to be reviewed prior to closing [4].