KBRA Assigns Preliminary Ratings to Pagaya AI Debt Grantor Trust 2025-4 and Pagaya AI Debt Trust 2025-4
9 Jun 2025 | New York
KBRA assigns preliminary ratings to 12 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-4 and Pagaya AI Debt Trust 2025-4 (collectively “PAID 2025-4”), an unsecured consumer loan ABS transaction. PAID 2025-4 has initial hard credit enhancement levels of 65.29% for the Class A-1 Notes to 3.67% for the Class F Notes. Credit enhancement is comprised of overcollateralization, subordination (except for the Class F Notes), a cash reserve account funded at closing, and excess spread.
PAID 2025-4 will issue 13 classes of notes totaling $490.0 million with KBRA rating the Class A-1 through Class F Notes, Class A, Class AB, Class ABC, Class ABCD, and Class EF Notes. KBRA will not be providing ratings on the Certificates or the FR Securities. PAID 2025-4 is a fully prefunded transaction where there will be no collateral funded at closing.
Pagaya Structured Products LLC, the sponsor and administrator, is a fully owned subsidiary of Pagaya US Holding Company LLC (formerly known as Pagaya Investments US LLC), which is 100% owned by Pagaya Technologies Ltd. (“Pagaya Technologies”), an Israeli corporation listed on the NASDAQ (PGY). Pagaya Technologies is a financial technology company in the lending marketplace that uses AI-driven credit and analysis technology. This transaction is the 45th publicly rated securitization sponsored by Pagaya Structured Products LLC (collectively with its affiliates, “Pagaya” or the “Company”).
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 proposed capital structure and Pagaya’s historical static pool data. KBRA considered its operational reviews of Pagaya and each of the Platform Sellers, as well as periodic update calls with the Company and Platform Sellers. KBRA has recently conducted surveillance on each platform’s KBRA-rated securitizations. Operative agreements and legal opinions will be reviewed prior to closing.
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