KBRA Assigns Ratings to Reach ABS Trust 2025-1

KBRA assigns ratings to four classes of notes issued by Reach ABS Trust 2025-1 (“Reach 2025-1”), an unsecured consumer loan ABS transaction. Credit enhancement consists of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account funded at closing, and excess spread.

This transaction represents Reach Financial, LLC’s (“Reach”, or the “Company”) first term ABS securitization in 2025 and ninth overall. Reach 2025-1 issued four classes of notes totaling $319.308 million, collateralized by a trust certificate backed by unsecured consumer loans.

Reach is an independent consumer finance company that was founded in New York, NY in 2015. Reach shares common ownership with National Debt Relief, LLC (“NDR”); owners of NDR own the majority of Reach, with the remaining equity interest distributed among Reach’s management team and key employees. Reach is the only lending platform used by NDR. The Company, previously known as Liberty Lending LLC, rebranded itself as Reach Financial, LLC in May 2022.

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 Reach as well as periodic update calls with the Company. Operative agreements and legal opinions were reviewed prior to closing.

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Methodologies