Mission Lane credit card trust wins preliminary KBRA ratings for Series 2026-A ABS

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Mission Lane Series 2026-A ABS

Highlights

KBRA assigned preliminary ratings to six classes of Mission Lane Credit Card Master Trust, Series 2026-A ABS notes, with initial credit enhancement ranging from 40.60% (Class A) to 3.50% (Class F).
Credit enhancement includes excess spread, overcollateralization, subordination (except Class F), and a reserve account if funded, with a revolving period of about three years before principal payments.
The receivables are owned by TAB Bank and WebBank, while KBRA's analysis applied its Credit Card ABS, Counterparty, and ESG methodologies, pending final operative agreements and legal opinions.

Preliminary ratings and transaction structure

As reported by Kroll Bond Rating Agency, KBRA assigns preliminary ratings to six classes of notes to be issued by Mission Lane Credit Card Master Trust, Series 2026-A, a credit card ABS transaction. The agency says the preliminary ratings reflect initial credit enhancement levels ranging from 40.60% for the Class A notes to 3.50% for the Class F notes.

Credit enhancement for the notes consists of excess spread from the pool of credit card receivables, overcollateralization, subordination, except for the Class F notes, and a reserve account if it is funded after closing. The transaction includes a revolving period of about three years, during which no principal payments are made on the notes unless an Early Amortization Event occurs.

The receivables in the trust portfolio are generated by accounts owned by Transportation Alliance Bank Inc., known as TAB Bank, and WebBank, both Utah-state chartered banks. TAB Bank and WebBank each serve as an originating bank and account owner, and 17 series have currently been issued from the trust.

Issuer background and analytical approach

Mission Lane, founded in 2018 as a Utah limited liability company, provides services that support its general-purpose Mission Lane credit card program under the Visa brand. Those services include marketing, underwriting and servicing credit card accounts, while employees work remotely and from the company's office in Richmond, Virginia.

In its review, KBRA says it applies its Credit Card ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology to assess the collateral pool and proposed capital structure. The agency also considers its operational review of Mission Lane and periodic update calls with the company, adding that operative agreements and legal opinions for the transaction are to be reviewed before closing.

In our earlier article on KBRA’s ratings for Clarus Capital Funding 2026-1, LLC, we covered the company’s second equipment ABS securitization backed by a portfolio of equipment lease and loan contracts. We noted the deal’s six rated note classes and outlined how sponsor scale, obligor diversification, and collateral performance factor into investor assessment as Clarus expands its use of structured finance funding.

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