KBRA Affirms Ratings for GITSIT Solutions, LLC

KBRA affirms the BBB- issuer rating of Orange, California-based GITSIT Solutions, LLC ("GITSIT" or "the company"). KBRA also affirms GITSIT's senior secured debt rating of BBB. The Outlook for the ratings is Stable.

Key Credit Considerations

GITSIT’s ratings are principally supported by its favorable longer-term operating performance over the course of its ~19-year operating history (predecessor included), its highly experienced management team, and a conservative financial profile as it relates to capital management, leverage, and disciplined growth. Across ~$1.8 billion of exited investments from the 2016-2026 vintages, the company has generated a 1.19x multiple on invested capital and approximately 20% IRR, with a weighted-average holding period of ~12 months. Despite comparatively weaker recent results, longer-term GAAP and Cash EBITDA ROAs remain supportive of the rating.

These returns are supported by GITSIT’s ability to acquire NPLs at significant discounts to underlying collateral value and rapidly resolve assets. Since 2016, GITSIT’s aggregate purchase price represented ~55% of underlying home value, while the current unmonetized portfolio had an investment-to-home-value ratio of ~61%, providing a meaningful collateral cushion.

GITSIT maintains a conservative capital profile, with standalone TCE/assets of 50% (52% with consolidated VIEs) and total debt-to-equity of 0.9x at 2Q26. Given the company’s investment in distressed and relatively illiquid underlying assets, we view the low leverage and ample equity buffers as key credit strengths. The company’s growing use of third-party capital provides additional loss absorption within consolidated investment vehicles without increasing GITSIT’s direct recourse leverage; importantly, GITSIT has no economic obligation to these vehicles beyond its recorded equity investment.

GITSIT’s underlying assets and historically concentrated revenue profile contribute to earnings volatility. However, the company’s growing third-party asset management business is expected to diversify revenues and improve earnings scalability over time. The company remains reliant on securitization markets and uncommitted warehouse financing, although funding diversification and liquidity have improved in recent periods.

KBRA incorporates one notch of uplift from the company’s issuer rating to arrive at a senior secured debt rating of BBB. Notching is supported by the substantial implied equity of the assets collateralizing the senior secured notes, with Specified Asset coverage of approximately 2.2x at 2Q26.

Rating Sensitivities

Positive rating momentum is not anticipated over the near term. Over the longer term, demonstrated resilience in financial performance through an economic downcycle, meaningful revenue diversification, greater diversification of funding sources, and higher levels of unencumbered assets, while maintaining conservative leverage, could support positive rating momentum. Conversely, leverage sustained above expectations, adverse regulatory developments, a material deterioration in operating performance, or an inability to maintain stable funding relationships could result in negative rating pressure.

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