The Wall Street Journal has reported that Lending Club has awarded its highest possible rating for a new bond deal coming out of online lender, Social Finance (known as SoFi). According to the report, the most recent bond securitisation deal merited a triple A rating from Lending Club, which is particularly significant as it is the first ever for a marketplace lender. The top rating reduces the cost of the financing for SoFi and also allows some new institutional money, specifically highly risk adverse funds, to step in and invest. This comes as particularly good news for the online lending market which has recently suffered some serious reputational damage as a result of the recent Moody’s scandal.
The Wall Street Journal has reported that Moody’s has awarded its highest possible rating for a new bond deal coming out of online lender, Social Finance (known as SoFi). According to the report, the most recent bond securitisation deal merited a triple A rating from Moody’s, which is particularly significant as it is the first ever for a marketplace lender. The top rating reduces the cost of the financing for SoFi and also allows some new institutional money, specifically highly risk adverse funds, to step in and invest. This comes as particularly good news for the online lending market which has recently suffered some serious reputational damage as a result of the recent Lending Club scandal.