Prosper Ratings
Every listing on Prosper is assigned a Prosper Rating—a proprietary rating developed by
Prosper that allows us to maintain consistency when assigning a rating to the listing.
Prosper Ratings allow you to easily analyze a listing's level of risk because the rating
represents an estimated average annualized loss rate range.
| Prosper Rating |
Estimated Avg. Annual Loss Rate* |
| AA |
0.00-1.99% |
| A |
2.00–3.99% |
| B |
4.00–5.99% |
| C |
6.00–8.99% |
| D |
9.00–11.99% |
| E |
12.00–14.99% |
| HR |
≥ 15.00% |
* estimated average annualized net loss rate
The estimated loss rate is based on the historical performance of Prosper loans with similar
characteristics. The base loss rate is determined by two scores: (1) the credit score, obtained from a credit
reporting agency, and (2) an in-house custom score, the
Prosper Score, built
on the Prosper population. These two scores determine an estimated base loss rate for each listing. Adjustments can then be made to the base loss rate based on the presence of a previous Prosper loan or product term. Any adjustments are added to the base loss rate to get the final loss rate, which then determines the Prosper Rating.
The estimated loss rates are not a guarantee and actual performance may differ from expected performance.
The Notes that correspond to specific borrower listings are offered pursuant to the
prospectus. Investors should read
the complete description of the Notes and risks associated with making an investment in the Notes
as well as other information about us and our platform in the prospectus.
