Press Release|ABS
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KBRA Affirms and Upgrades Ratings from 16 Upstart Securitization Trust, Upstart Pass-Through Trust, and Upstart Structured Pass-Through Trust Transactions

27 Aug 2025   |   New York

Contacts

KBRA affirms ratings on 11 classes of notes and upgrades its ratings on 10 classes of notes issued from 16 Upstart Securitization Trust (“UPST”), Upstart Pass-Through Trust (“UPSPT”), and Upstart Structured Pass-Through Trust (“USPTT”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the July 2025 distribution date (June 2025 collection period). To date, the securities have received timely interest payments.

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 Upstart Securitizations Comprehensive Surveillance Dashboard. UPST 2025-1 and UPST 2025-2 were not included in this review as they are less than six months seasoned.

The loans supporting the transactions were originated through the online platform operated by Upstart Network, Inc. (“Upstart” or the “Company”), a 100% owned subsidiary of the publicly traded entity Upstart Holdings, Inc. (NASDAQ: UPST). Upstart was established in February 2012 and operates an online marketplace lending program and a white label technology licensing service (collectively, the “Upstart Platform” or the “Platform”) that allows lending partners to leverage Upstart’s online application flow, machine learning credit model, verification process and other technology to originate loans according to its own underwriting standards.

Upstart’s online marketplace lending program (the “Upstart Program” or the “Program”) offers consumer loans originated by Cross River Bank (“CRB”), FinWise Bank (“FinWise”), Customers Bank (“CUBI”) and DR Bank (“DRB”). As of June 30, 2025, the Company had unrestricted cash balances totaling $395.9 million and stockholders’ equity of $722.0 million, reflecting a 14.0% increase from $633.2 million as of December 31, 2024. The Company reported a net income of $3.2 million for the six months ending June 30, 2025, compared to a net loss of $119.1 million for the same period in 2024, indicating an improvement in financial performance.

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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