The preliminary ratings assigned to Lendmark Funding Trust 2025-1's (LFT 2025-1) $351.79 million personal consumer loan-backed notes reflect: Initial hard enhancement of approximately 36.80%, 28.90%, 20.10%, 11.50%, and 2.50% for the class A, B, C, D, and E notes, respectively, including the non-amortizing reserve account. The fully funded, non-amortizing reserve account of $1.79 million (approximately 0.50% of the initial loan pool). The characteristics of the pool being securitized and receivables expected to be purchased during the revolving period. Our worst-case, weighted average base-case loss for this transaction of 12.04%, which is a function of the transaction-specific reinvestment criteria and actual loan performance. Our base-case also accounts for historical volatility observed in annualized gross loss rates for Lendmark Financial Services' (Lendmark)
