KBRA assigns preliminary ratings to two classes of notes issued by Upstart Securitization Trust 2023-3 (“UPST 2023-3”), a $194.74 million consumer loan ABS. UPST 2023-3 will have an expected collateral balance of approximately $263.159 million and the preliminary ratings reflect initial credit enhancement levels of 45.50% for the Class A notes and 26.50%% for the Class B notes. Credit enhancement consists of overcollateralization, excess spread, a non-declining cash reserve account and subordination (in the case of the Class A).

UPST 2023-3 represents the 43^rd ABS securitization collateralized by unsecured consumer loans originated through the online platform operated by Upstart Network, Inc. (“Upstart” or the “Company”) and the 22^nd from the Upstart Securitization Trust (“UPST”) ABS program. Similar to UPST 2023-2, the UPST 2023-3 securitization is sponsored solely by Upstart. Previously, UPST securitizations were co-sponsored by Goldman Sachs and were separate from other securitization vehicles containing collateral originated through Upstart including “UPSPT”, sponsored by Jefferies, LLC and “USPTT”, sponsored by an affiliate of Credit Suisse Finance LLC.

Upstart was established in February 2012 and operates an online platform (www.upstart.com) 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.

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 Upstart, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Related Publications

• Consumer Loan ABS Global Rating Methodology
• 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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