LendingClub Achieves Investment Grade Rating for $100 Million SLCLC Program with Global Insurer

LendingClub Achieves Investment Grade Rating for SLCLC Program

In a significant milestone, LendingClub Corporation has successfully secured an investment-grade rating from Fitch Ratings for its latest issuance of Structured Loan Certificates (SLCLC), totaling $100 million. This marks an important advancement for LendingClub, as it becomes one of the few digital marketplace banks to earn such recognition from a prominent credit rating agency. The transaction concluded with participation from a leading global insurance company, enhancing its credibility and outreach in the investment community.

According to LendingClub's CEO, Scott Sanborn, attaining an investment-grade rating for their first series of SLCLC highlights the organization’s commitment to responsible credit stewardship and aims to deliver robust returns for its loan investors. This newly-rated product has already piqued investor interest since its inception, and the rating will likely amplify its appeal further. Sanborn noted, "Securing the investment-grade rating only enhances that appeal for both new and existing investors, which should ultimately translate to higher loan sales pricing and increased revenue."

Clarke Roberts, Senior Vice President and General Manager of Marketplace at LendingClub, expressed enthusiasm over extending the advantages of the SLCLC program to those investors seeking rated products, particularly insurance companies, which collectively manage over $8.5 trillion in assets. Roberts emphasized that this rating broadens their investor channels and reinforces LendingClub's reputation as a partner of choice in the asset class.

The SLCLC program, which launched in April 2023, has rapidly grown and surpassed $4 billion in total originations by the end of 2024. The built-in financing structure and seamless investment experience have attracted private credit funds, making the offering compelling for investors. By collaborating with Fitch to secure the investment-grade rating, LendingClub aims to cater to a broader investor base, fulfilling the needs of those who prefer rated products.

This rated transaction will be available in the over-the-counter market, complete with its unique CUSIP identifier, and will be cleared through the Depository Trust and Clearing Company (DTCC). Throughout its history, LendingClub has pioneered and released a range of innovative product structures to enhance investor access to consumer credit while improving liquidity. Since 2016, the company has issued approximately $4 billion in rated transactions through its CLUB and CLRT programs, showcasing its deep expertise in this area.

Founded in 2007, LendingClub has become a leading player in the U.S. digital banking scene. The bank offers a wide array of financial products and services designed to optimize borrowing costs and savings rates for its members. Leveraging advanced credit decisioning and machine learning models, LendingClub has provided seamless access to credit for over 5 million members aiming to achieve their financial objectives. For anyone interested in exploring LendingClub’s offerings, more information can be accessed via their official website.

With the increasing demand for structured financial products and the importance of investment ratings, LendingClub’s recent achievements position it as a formidable competitor in the marketplace. The firm is well-poised to expand its offerings while catering to an array of investors, continually striving to innovate and enhance the digital banking landscape.