KBRA Assigns Ratings to ACHV ABS Trust 2024-3AL

KBRA assigns ratings to five classes of notes issued by ACHV ABS Trust 2024-3AL (“ACHV 2024-3AL”), consumer loan asset-backed securities transaction. The ratings reflect initial credit enhancement levels ranging from 67.75% for the Class A notes to 7.50% for the Class E notes. Credit enhancement consists of overcollateralization, subordination (except for the Class E notes), a reserve account funded at closing, and excess spread.

ACHV 2024-3AL issued 10 classes of notes totaling approximately $186.4 million with KBRA rating the Class A through Class E Notes. KBRA did not rate the Exchangeable Notes, Class R or the PT Notes.

This transaction represents the 21st overall ABS securitization collateralized by unsecured consumer loans. The company completed 20 deals, seven of which were under the Achieve brand, which was adopted in September 2022, after previously being named Freedom Financial. The proceeds from the sale of the notes will be used to pay transaction expenses and purchase the loans and related rights from ACHV ABS Master Depositor Trust (the “Depositor”), which purchased the loans from the Loan Sellers. The Depositor will in turn sell the loans to the Issuer.

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 transaction’s underlying collateral pool, the proposed capital structure and FFAM’s historical static pool data. KBRA considered its operational review of Freedom, as well as periodic update calls with the Company. Operative agreements and legal opinions were reviewed prior to closing.

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Methodologies