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KBRA Affirms and Upgrades Ratings from GreenSky Home Improvement Issuer Trusts and Goldman Home Improvement Trusts

25 Jul 2025   |   New York

Contacts

KBRA affirms its rating on 22 classes of notes and upgrades its ratings on four classes of notes issued from five Goldman Home Improvement Trust (“GHIT”) and GreenSky Home Improvement Issuer Trust (“GSKY”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the June 2025 distribution date (May 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying Goldman Home Improvement Trust and GreenSky Home Improvement Issuer Trust Comprehensive Surveillance Dashboard. GSKY 2025-1 and GSKY 2025-2 closed on March 25, 2025 and July 22, 2025, respectively, and were not included in this review as they are less than six months seasoned.

The loans supporting the GSKY and GHIT transactions were originated by Synovus Bank and Goldman Sachs Bank USA, with all loans originated through the GreenSky Program administered by GreenSky, LLC (“GreenSky” or the “Company”). GreenSky is a technology-driven point-of-sale platform that was established in 2006. In March 2024, the Company was acquired from Goldman Sachs by a consortium led by Sixth Street. GreenSky has facilitated over $59 billion of loan originations since inception and has issued four 144A securitizations under the GSKY shelf.

GreenSky is headquartered in Atlanta, Georgia, and operates a servicing center in the same location while also leveraging third-party BPO partnerships. As of March 31, 2025, the Company serviced a loan portfolio of approximately $14.1 billion. All loans under the GreenSky Program are originated at the point-of-sale through a network of merchants in the home improvement sector. Based on financials and performance metrics disclosed, GreenSky has demonstrated consistent loan servicing capabilities throughout its growth trajectory.

GreenSky facilitates originations through its network of over 10,000 merchants using a mobile or web-based application process. Merchants pay a transaction fee to GreenSky, and the platform uses credit bureau data and proprietary underwriting guidelines to evaluate applications. Consumers applying through the GreenSky Program are generally prime borrowers seeking financing for home improvement products and services. Loan products are unsecured and include fixed-rate, interest-free, and deferred-interest structures with terms ranging from 24 to 240 months.

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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