Avant Loans Funding Trust 2026-REV2 ABS expected ratings assigned by Fitch

Highlights

Fitch assigned expected ratings from AAA(EXP)sf to B(EXP)sf for AVNT 2026-REV2 ABS backed by WebBank-originated consumer loans with a weighted average FICO of 644.
Grade C loans comprise 79.64% of the pool balance, with Fitch modeling a gross default assumption of 18.060% and base-case default rate of 20.80%.
Fitch warns that higher-than-expected defaults or charge-offs could trigger negative rating actions by reducing credit enhancement and loss coverage levels.

Transaction structure and rating assumptions

As reported by Fitch Ratings, the expected ratings cover securities issued by Avant Loans Funding Trust 2026-REV2, or AVNT 2026-REV2, which is backed by a revolving pool of fixed-rate, fully amortizing, unsecured consumer loans. The loans are originated by WebBank, a Utah-chartered industrial bank, through the Avant Platform, with original terms of 12, 24, 36, 48, 60 months.

The weighted average FICO score for the pool is 644, while about 4.51% of borrowers have FICO scores below 600. Grade C loans account for 79.64% of the pool balance. Fitch says its gross default assumption for the pool is 18.060%, alongside a base-case gross default assumption of 20.80% to reflect the revolving nature of the collateral.

Fitch says it modeled initial credit enhancement under stressed cash flow assumptions and found all classes pass at the assigned rating levels. The expected ratings are AAA(EXP)sf for Class A, AA-(EXP)sf for Class B, A-(EXP)sf for Class C, BBB-(EXP)sf for Class D, BB-(EXP)sf for Class E and B(EXP)sf for Class F.

Portfolio profile and servicing implications

The collateral pool is described as diversified across 443 states, with Texas representing 12.65% of the pool balance. As of the statistical cutoff date of Sept. 16, 2026, all loans in the pool are current.

Fitch adds that unexpected increases in defaults or charge-offs could lead to negative rating actions because they would reduce credit enhancement levels and loss coverage. Its review also finds the transaction's eligibility criteria for selecting receivables adhere to usury limits aimed at reducing exposure to riskier loans.

The agency says the servicing capabilities of Avant, LLC and backup servicer Wilmington Trust, National Association, are adequate for this consumer loan pool. That servicing assessment supports the operational framework behind the securitization as the deal moves toward issuance.

Our earlier coverage of Hainan Rubber’s proposed subordinated perpetual sustainable securities explained Fitch’s BBB- rating rationale, focusing on the instruments’ lower ranking in the capital structure and the option to defer coupons. We also outlined Fitch’s view of the group’s high leverage and liquidity position, including the role of state-linked support in maintaining funding access as the company refinances offshore debt via its Halcyon Agri unit.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.