KBRA Assigns Preliminary Ratings to ACHD Trust 2025-DS1
3 Dec 2025 | New York
KBRA assigns preliminary ratings to three classes of notes issued by ACHD Trust 2025-DS1 (“ACHD 2025-DS1”), an ABS transaction collateralized by a pool of debt settlement (“DS”) fees associated with enrolled debts from a static pool of DS customers.
ACHD 2025-DS1 will issue three classes of notes totaling $217.23 million. The transaction benefits from credit enhancement levels that are sufficient to withstand KBRA’s rating stresses. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class C notes), a cash reserve account, and excess spread.
This transaction represents Freedom Debt Relief, LLC d/b/a Achieve Debt Relief’s (“Achieve” or “Company”) inaugural ABS securitization collateralized by DS fees.
Achieve is a wholly owned subsidiary of Freedom Financial Network Funding, LLC (“FFNF”). FFNF is a San Mateo, CA, based company with operations in Tempe, AZ. It was founded in 2002 and offers consumer financial solutions including installment loans originated by a partner bank, debt restructuring, home equity lines of credit, and financial education, through subsidiary companies — Freedom Financial Asset Management, LLC, Achieve and Lendage, LLC d/b/a Achieve Home Loans. Two private equity firms, Cercano Capital and Stone Point Capital, have invested in the common equity of Pantheon Freedom, Inc., the ultimate parent holding company of Achieve.
KBRA applied its General Global Rating Methodology for Asset Backed Securities 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, the proposed capital structure, and Achieve’s historical static pool data. KBRA also considered its operational review of the Master Backup Servicer and the Master Backup Servicer Subcontractor, as well as periodic due diligence discussions with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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