KBRA Assigns Preliminary Ratings to OnDeck Asset Securitization IV, LLC, Series 2025-1

KBRA assigns preliminary ratings to notes issued by OnDeck Asset Securitization IV, LLC (“ODAS IV” or the “Issuer”). ODAS IV will issue four classes of Series 2025-1 Notes (“ODAS IV 2025-1”) totaling $261.392 million.

On Deck Capital Inc., which was founded in 2006, and ODK Capital, LLC, a wholly owned subsidiary of Enova International, Inc. formed in December 2020, (collectively “OnDeck” or the “Company”) operates through an online lending platform (www.ondeck.com) (the “OnDeck Platform”) to originate small business loans in the U.S. through its subsidiaries. The Company is a wholly owned subsidiary of Enova International, Inc. (“Enova”), a non-prime consumer and small business lender. Enova is a publicly traded fintech company under the ticker “ENVA”. Since its founding, OnDeck has originated over $20.9 billion to over 162,000 small businesses. OnDeck had 305 dedicated personnel as of December 2024.

ODAS IV 2025-1 represents OnDeck’s ninth small business ABS securitization. The transaction issued $261.392 million of Series 2025-1 notes (the “Series 2025-1 Notes” or the “Notes”) secured by a revolving pool of Receivables that were underwritten under OnDeck’s credit guidelines and originated through the OnDeck Platform to small businesses in the U.S. ODAS IV 2025-1 features a revolving period (the “Revolving Period”), which will end on the earlier of (i) the close of business on March 31, 2028 or (ii) the date on which an Amortization Event has occurred. The proceeds of the sale of the Series 2025-1 Notes will be used to fund the Series 2025-1 reserve account and to purchase fixed-rate small business loans that are either the Term Loans or funded portions of the LOCs originated through the OnDeck Platform.

KBRA applied its Global General Rating Methodology for Asset-Backed Securities as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. This transaction falls within “Category 1 – Financial Assets” categorization noted within the General Global Rating Methodology for Asset Backed Securities, which typically relates to transactions that are backed by pools of consumer or commercial financial obligations owed by diverse obligors. KBRA considered its operational review of the Company, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• Structured Finance: 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), 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.

Doc ID: 1008473

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