NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA assigns preliminary ratings to three classes of notes issued by PowerPay Issuance Trust 2025-1 (“PowerPay 2025-1”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements and elective medical. This transaction represents PowerPay’s second 144A ABS securitization.
PowerPay 2025-1 will issue four classes of notes totaling $556.1 million, which is expected to be collateralized by $564.5 million of consumer loans used for home improvement and elective medical procedures. The transaction utilizes a 90-day prefunding period. The initial receivables amount to $429.5 million, representing 76.08% of the maximum aggregate balance that can be funded. The initial prefunded account deposit will be $132.98 million, which can be used to purchase a maximum aggregate balance of subsequent receivables (“Subsequent Receivables”) of $135 million.
Founded in 2018 and headquartered in Wayne, PA, PowerPay, LLC (“PowerPay” or the “Company”) operates a digital platform (the “PowerPay Platform”) that facilitates point-of-sale financing solutions to consumers across the home improvement and elective medical markets. Since inception, the Company has funded over $2.1 billion across approximately 120,000 transactions. PowerPay currently offers financing in all 50 states and the District of Columbia through its funding partners via the PowerPay Platform. PowerPay provides loan servicing and collection services for PowerPay 2025-1.
KBRA applied its Consumer 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 static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of PowerPay LLC, as well as several business updates with the Company since that time. Operative agreements and legal opinions will be reviewed prior to closing.
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Methodologies
- ABS: Consumer 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
Doc ID: 1011961
Contacts
Analytical Contacts
Maxim Berger, Senior Director (Lead Analyst)
+1 646-731-1260
[email protected]
Daniel Higgins, Associate
+1 646-731-2371
[email protected]
Edward Napoli, Director
+1 646-731-1284
[email protected]
Melvin Zhou, Managing Director (Rating Committee Chair)
+1 646-731-2412
[email protected]
Business Development Contact
Arielle Smelkinson, Senior Director
+1 646-731-2369
[email protected]
