KBRA assigns a preliminary rating to the Class A Notes issued by MPOWER Education Trust 2024-A (“MPOWER 2024-A”), an asset-backed securitization collateralized by private education loans made to international students attending schools in the United States. MPOWER 2024-A is the inaugural securitization of MPOWER Financing, Public Benefit Corporation. The transaction is a term ABS securitization collateralized by private education loans originated by Bank of Lake Mills under the MPOWER Private Education Loan Program.

MPOWER 2024-A will issue three classes of notes totaling $198.1 million, collateralized by $215.2 million of education loans. MPOWER 2024-A has initial credit enhancement levels ranging from 32.88% for the Class A notes to 8.44% for the Class C notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class C notes), a cash reserve account and excess spread.

Founded in 2014, MPOWER is a private education lender headquartered in Washington, D.C. MPOWER’s product offering was developed to address the difficulties for international students in the U.S. and Canada to obtain education financing. The Company has developed relationships with over 300 universities and colleges in the U.S. and Canada, and provided education financing to over 13,000 students from over 100 countries.

KBRA applied its Private Student 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 MPOWER, as well as due diligence calls with MPOWER. Operative agreements and legal opinions will be reviewed prior to closing.

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Methodologies

• ABS: Private Student Loan ABS Global Rating Methodology
• 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) 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.

Doc ID: 1004121

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