Press Release|ABS
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KBRA Takes Rating Actions on Prosper Marketplace Issuance Trusts

13 Jan 2026   |   New York

Contacts

KBRA upgrades its ratings on three classes of notes, affirms its ratings on two classes of notes, and downgrades one class of notes issued from two series of Prosper Marketplace Issuance Trust (“PMIT”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the upgraded and affirmed ratings. The downgraded rating action is reflective of continued credit support erosion and the performance of the underlying collateral. To date, the securities have received timely interest payments. The data used for this review is as of the December 2025 distribution date (November 2025 collection period).

In performing its rating review, KBRA utilized its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying Prosper Marketplace Issuance Trust Comprehensive Surveillance Dashboard.

Founded in 2005 and headquartered in San Francisco, CA, Prosper operates a marketplace for its online consumer installment loan program administered through www.prosper.com (the “Prosper Platform” or the “Platform”). The Platform offers fixed rate, fully amortizing unsecured consumer loans with original balances ranging from $2,000-$50,000 and original terms between two and five years. The loans on the Platform are originated by WebBank, a Federal Deposit Insurance Corporation insured, Utah-chartered industrial bank. Origination fees of 1.00% - 9.99% are charged to the borrower based on the borrower’s risk profile and loan term. The origination fee is deducted from the borrower’s total loan amount prior to disbursement.

As of September 30, 2025, the Company serviced a portfolio of $4.0 billion and personal loan originations through the Platform were $2.0 billion for the nine months ended September 30, 2025. Prosper Marketplace, Inc., the Company’s parent entity, is a privately held company that has disclosed its financial statements in its 10Q and 10K SEC filings. PMI reported a net loss of $36.8 million and Adjusted EBITDA of $17.6 million for the nine-month period ended September 30, 2025, compared to a reported net loss of $16.7 million and Adjusted EBITDA of $6.0 million for the same period in 2024. As of September 30, 2025, the PMI reported cash and cash equivalents (excluding restricted cash) of $39.0 million and total assets of $802.4 million.

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

Methodologies

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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