KBRA Assigns Ratings to GreenSky Home Improvement Issuer Trust 2025-1
25 Mar 2025 | New York
KBRA assigns ratings to five classes of notes issued by GreenSky Home Improvement Issuer Trust 2025-1 ("GSKY 2025-1"), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements.
GSKY 2025-1 represents the seventh 144A securitization of home improvement loans originated through the lending program administered by GreenSky, LLC (“GreenSky” or the “Company”) on behalf of federally-insured, federal, or state-chartered lenders in connection with the lenders’ origination of consumer loans through a network of merchants (the “GreenSky Program”) and the third securitization issued under the GreenSky Home Improvement Issuer Trust (GSKY) shelf.
GSKY 2025-1 issued five classes (eight tranches) of notes totaling $716.553 million, collateralized by economic participation interests (the "Participations") in a pool of approximately $750 million consumer loans used to finance home improvement products and services. These loans were originated by Goldman Sachs Bank USA (the "Loan Originator") and Synovus Bank (the "Origination Partner") under the GreenSky Program.
Founded in 2006 and headquartered in Atlanta, GA, GreenSky administers the GreenSky Program for merchants and lenders that facilitates point-of-sale financing for consumers in the home improvement markets.
In March 2022, GreenSky was acquired by The Goldman Sachs Group, Inc., becoming an indirect, wholly-owned subsidiary of the Loan Originator, a New York state-chartered bank. The Loan Originator originated substantially all loans under the GreenSky Program between mid-August 2022 and mid-March 2024.
Effective March 15, 2024, the Loan Originator sold GreenSky (and certain associated assets) to a consortium of institutional investors led by Sixth Street, sold all outstanding loans made by the Loan Originator through the GreenSky Program to Synovus Bank, and the Loan Originator ceased to own or originate loans made through the GreenSky Program.
Approximately 35% of the loans in the transaction collateral pool were originated by the Loan Originator, and approximately 65% were originated by the Origination Partner.
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