Press Release|ABS

KBRA Assigns Ratings to ME Funding, LLC, Series 2024-1 and Takes Other Rating Actions

9 Apr 2024   |   New York


Massage Envy 2024-1 is the second whole business securitization (WBS) issued by ME Funding, LLC (the Issuer). In connection with its first securitization in 2019, Massage Envy Franchising, LLC (Massage Envy or the Company) contributed substantially all of its revenue-generating assets to ME SPE Franchising, LLC, a wholly-owned subsidiary of the Issuer, as collateral for the offered notes. Similar to other master trust WBS transactions, the Issuer can offer subsequent series of notes if certain requirements in the transaction documents are met. The Issuer is issuing three note classes totaling $381.6 million (the Series 2024-1 Notes). In conjunction with the anticipated rating assignment, KBRA is withdrawing the ratings on the Issuer’s Series 2019-1 Class A-1 and Class A-2 Notes following the full repayment of the securities. Proceeds for the former repayment are being sourced through a partial draw of the Series 2024-1 Class A-1-VFN Notes, while funds for the latter are being generated from the Series 2024-1 Class A-2 Note issuance as well as Company funds. The transaction collateral includes existing and future franchise and development agreements, regional development agreements, vendor contracts, related franchisee payments and securitization intellectual property (IP). The proceeds from the offered notes are being used to repay outstanding amounts under the Series 2019-1 Notes in full, pay certain transaction expenses, make deposits into certain transaction accounts and for general corporate purposes.

To access rating and relevant documents, click here.

Click here to view the report.



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003843

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