KBRA Affirms and Upgrades Ratings for FREED and ACHV ABS Trusts

KBRA affirms ratings on 16 classes of notes and upgrades ratings on eight classes of notes issued from five FREED ABS Trust (“FREED”) transactions and seven ACHV ABS Trust (“ACHV”) 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 July 2025 distribution date (June 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 FREED and ACHV ABS Trusts Comprehensive Surveillance Dashboard. ACHV 2025-1PL was not included in this review as it is less than six months seasoned.

Achieve, the parent company to Freedom Financial Asset Management, LLC (“FFAM”), is a San Mateo, CA, based company with operations in Tempe, AZ. The Company was founded in 2002 and offers consumer financial solutions including installment loans, debt restructuring, home equity lines of credit (“HELOCs”), and financial education, through its four subsidiary companies — FFAM, Freedom Debt Relief, LLC (“FDR,” and also d/b/a Achieve Resolution), and Lendage, LLC d/b/a Achieve Home Loans (“Lendage”) — and a fund (“Freedom Consumer Credit Fund” or “FCCF”). Two private equity firms, Vulcan Capital and Stone Point Capital, have invested in Pantheon Freedom, Inc., the ultimate parent holding company of Achieve.

Pantheon Freedom, Inc., the parent company of Achieve, is a closely held private entity owned by the Company's founders and two private equity investors, Stone Point Capital and Vulcan Capital. KBRA received FFAM’s financial statements from 2016, and FFAM has been profitable until the year ended December 2022. According to FFAM’s unaudited financial statements for the six months ending June 30, 2025, net losses decreased from $18.7 million to $3.1 million compared to the same period in the prior year, primarily due to reduction in expenses. As of June 30, 2025, FFAM reported total shareholders’ equity of $33.2 million, down from $34.7 million as of June 30, 2025. Lendage has a $75 million short-term financing warehouse facility which Achieve utilizes for its HELOC program.

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Methodologies