KBRA Assigns a Preliminary Rating to BHG Securitization Trust 2024-1CON
4 Mar 2024 | New York
KBRA assigns a preliminary rating to one class of notes issued by BHG Securitization Trust 2024-1CON (“BHG 2024-1”), an asset-backed securitization collateralized by a pool of unsecured consumer loans (“Consumer Loans”).
BHG 2024-1 will issue five classes of notes totaling $273.3 million. The preliminary rating reflects the initial credit enhancement level of 54.70% for the Class A notes.
BHG 2024-1 represents the ninth term ABS securitization for the Bankers Healthcare Group, LLC (“BHG” or the “Company”), but the first ABS securitization collateralized exclusively by Consumer Loans. BHG was founded in 2001 and provides Commercial Loans and Consumer Loans primarily to prime, high income professionals. Pinnacle Financial Partners, Inc., a holding company headquartered in Tennessee, and its subsidiary Pinnacle Bank, a Tennessee state-chartered bank, own a combined 49% of the Company. With corporate headquarters in Davie, Florida, and financial headquarters in Syracuse, New York, BHG has provided more than $18 billion in funding to over 160,000 borrowers since inception.
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 and the proposed capital structure. KBRA considered its operational review of BHG, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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