KBRA Assigns Ratings to Pagaya Point of Sale Holdings Grantor Trust 2025-1 and Pagaya Point of Sale Holdings Trust 2025-1
28 May 2025 | New York
KBRA assigns ratings to nine classes of notes issued by Pagaya Point of Sale Holdings Grantor Trust 2025-1 and Pagaya Point of Sale Holdings Trust 2025-1 (collectively “POSH 2025-1”), a point-of-sale unsecured consumer loan ABS transaction. POSH 2025-1 has initial hard credit enhancement levels of 28.42% for the Class A Notes to 1.77% for the Class F Notes. Credit enhancement is comprised of overcollateralization, subordination (except for the Class F Notes), a cash reserve account funded at closing, and excess spread.
POSH 2025-1 issued 10 classes of notes totaling $300.00 million with KBRA rating the Class A through Class F Notes, Class AB, Class ABC, and Class ABCD. KBRA will not be providing ratings on the Certificates or the FR Securities. POSH 2025-1 is a fully prefunded transaction where there will be no collateral funded at closing. The transaction also includes an 18-month revolving period (including the prefunding period). If the revolving period ends or an amortization event occurs, the amortization period will begin. During the amortization period, reinvestment is not permitted, and distributions will be made sequentially to the noteholders according to the amortization priority of payments.
Pagaya Structured Products LLC, the sponsor and administrator, is a fully owned subsidiary of Pagaya US Holding Company LLC (formerly known as Pagaya Investments US LLC), which is 100% owned by Pagaya Technologies Ltd. (“Pagaya Technologies”), an Israeli corporation listed on the NASDAQ (PGY). Pagaya Technologies is a financial technology company in the lending marketplace that uses AI-driven credit and analysis technology. This transaction is the 43rd publicly rated securitization sponsored by Pagaya Structured Products LLC (collectively with its affiliates, “Pagaya” or the “Company”).
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 proposed capital structure and Pagaya’s historical static pool data. KBRA considered its operational reviews of Pagaya and each of the Platform Sellers, as well as periodic update calls with the Company and Platform Sellers. KBRA has recently conducted surveillance on each platform’s KBRA-rated securitizations. Operative agreements and legal opinions were reviewed prior to closing.
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