KBRA Assigns Preliminary Ratings to Aqua Finance Trust 2024-A
24 Sep 2024 | New York
KBRA assigns preliminary ratings to four classes of notes issued by Aqua Finance Trust 2024-A (“Aqua 2024-A”), an asset-backed securitization collateralized by marine and recreational vehicle contracts as well as home improvement contracts.
Aqua 2024-A will issue four classes of notes totaling $418.53 million, collateralized by $450.04 million receivables. Aqua 2024-A has initial credit enhancement levels ranging from 37.70% for the Class A notes to 7.50% for the Class D notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account, and excess spread.
Aqua Finance, Inc. (“Aqua” or the “Company”), founded in 1985 and incorporated in January 1988, is a consumer finance company operating in all 50 states. On July 29, 2022, Athene Holding Ltd (“Athene”), a retirement services company acquired a controlling stake in Aqua. Prior to Athene’s acquisition, the Company was majority owned and controlled by a Blackstone managed fund.
KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Consumer Loan ABS Global Rating Methodology, General Global Rating Methodology for Asset-Backed Securities, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of Aqua, as well as regular due diligence calls with Aqua. Operative agreements and legal opinions will be reviewed prior to closing.
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