KBRA Assigns Preliminary Ratings to Purchasing Power Funding 2024-A, LLC
13 Feb 2024 | New York
KBRA assigns preliminary ratings to five classes of notes issued by Purchasing Power Funding 2024-A, LLC (“PPF 2024-A”), a $200.36 million consumer installment receivable ABS transaction. PPF 2024-A is a revolving ABS securitization with an initial collateral balance of approximately $227.3 million and is collateralized by a pool of retail installment sales contracts (“Receivables”) originated by Purchasing Power, LLC (the “Company” or “Purchasing Power”).
Founded in 2001, Purchasing Power is an Atlanta, GA based provider of an organization-sponsored payroll purchase program. Purchasing Power partners with private and government employers (collectively “Clients”) to provide voluntary financing to their employees (“Obligors”) for the purpose of purchasing consumer goods and services. Purchasing Power does not offer loans to their Obligors. Instead, the Obligor is offered a Receivable which is repaid through payroll deductions (or payroll allotment for government employees) from their paychecks.
PPF 2024-A has initial credit enhancement levels from 52.53% for the Class A notes to 12.72% for the Class E notes. Credit enhancement consists of subordination (except for the Class E notes), overcollateralization, a non-declining reserve account, and excess discount, which is not included in the credit enhancement percentages.
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 portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of Oportun, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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