KBRA Assigns Ratings to ACHV ABS Trust 2024-2PL

KBRA assigns ratings to four classes of notes issued by ACHV ABS Trust 2024-2PL (“ACHV 2024-2PL”), a $263.35 million consumer loan asset-backed securities transaction. The ratings reflect initial credit enhancement levels of 59.00% for the Class A notes, 38.80% for the Class B notes, 27.60% for the Class C notes, and 14.70% for the Class D notes. Credit enhancement consists of overcollateralization, subordination (except for the Class D notes), a reserve account funded in subsequent periods after closing, and excess spread.

This transaction represents the 20th overall ABS securitization collateralized by unsecured consumer loans. The company completed 19 deals, six of which were under the Achieve brand, which was adopted in September 2022, after previously being named Freedom Financial. The proceeds from the sale of the notes will be used to pay transaction expenses and purchase the loans and related rights from ACHV ABS Master Depositor Trust (the “Depositor”), which purchased the loans from the Loan Sellers. The Depositor will in turn sell the loans to the Issuer.

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, the proposed capital structure and FFAM’s historical static pool data. KBRA considered its operational review of Freedom, as well as periodic update calls with the Company. Operative agreements and legal opinions were reviewed prior to closing.

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Methodologies