KBRA Assigns Preliminary Ratings to Stream Innovations 2024-1 Issuer Trust
24 Jun 2024 | New York
KBRA assigns preliminary ratings to three classes of notes issued by Stream Innovations 2024-1 Issuer Trust (“STRE 2024-1”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements. This transaction represents Stream Innovation Inc.’s inaugural 144A ABS securitization.
STRE 2024-1 will issue three classes of notes totaling $194.59 million, collateralized by $211.51 million of receivables.
Stream Innovations Inc. (“Stream” or the “Company”) was founded in 2020, is based in Conshohocken, Pennsylvania and provides financing for customers of Power Home Remodeling Group, LLC (“Power Home” or the “Merchant”), under the Stream Program. Stream was founded and is owned by several of the owners of Power Home, the COO of Power Home and the CEO of Stream. Power Home, founded in 1992 and headquartered in Chester, Pennsylvania, is a home remodeling company focused on installation and construction of residential energy efficiency and home improvement projects. Power Home has 21 offices in the U.S. and has completed over 1 million home improvement projects since inception. Power Home’s primary home improvement projects are for the installation of windows, siding, insulation, doors and roofs. Power Home currently has over 3,700 employees and operates in 25 states.
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 Stream Innovation Inc., 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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