KBRA Assigns Preliminary Ratings to Goldman Home Improvement Trust 2022-GRN2 Issuer Trust

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to four classes of notes issued by Goldman Home Improvement Trust 2022-GRN2 Issuer Trust (“GHIT 2022-GRN2”), a home improvement loan ABS transaction.

GHIT 2022-GRN2 will issue four classes of notes totaling $213.988 million, collateralized by 95% of economic participation interests (the “Participations”) in a pool of approximately $265.0 million consumer loans used to finance home improvement products and services originated by third-party banks under the GreenSky Program. The Participations will be sold from Goldman Sachs Bank USA (the “Seller”) to Goldman Sachs Asset Backed Securities Corp. (the “Depositor” and “Sponsor”), and then from the Depositor to GHIT 2022-GRN2 (the “Issuer”), which will in turn contribute the Participations to the GHIT 2022-GRN2 Grantor Trust.

Founded in 2006 and headquartered in Atlanta, GA, GreenSky, LLC (together with its affiliates that provide, directly or indirectly, any of the services related to the GreenSky Platform, “GreenSky” or the “Company”) operates a platform for merchants that facilitates point-of-sale financing for consumers in the home improvement markets (the “GreenSky Platform” or the “Platform”). Loans are originated by GreenSky’s third-party bank partners, under the GreenSky Platform, with GreenSky providing related loan servicing and collection services. Loans originated under the GreenSky Platform generally include reduced rate loans (“Reduced Rate Loans”), zero interest loans (“Zero Interest Loans”), and deferred interest loans (“Deferred Interest Loans”). GreenSky’s former parent company, GreenSky, Inc., completed an initial public offering in May 2018. On March 29, 2022, The Goldman Sachs Group, Inc announced that it completed the acquisition of GreenSky, Inc in an all-stock transaction. GreenSky is now a wholly owned subsidiary of Goldman Sachs Bank USA, which is a wholly owned subsidiary of The Goldman Sachs Group, Inc. In August 2022, Goldman Sachs Bank USA began originating GreenSky Platform loans and is currently originating substantially all GreenSky Platform loans, although no such loans are included in the GHIT 2022-GRN2 collateral pool.

KBRA applied its Global Consumer Loan ABS Rating Methodology and its Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA also conducted an operational assessment of GreenSky, as well as a review of the transaction’s legal structure and transaction documents. KBRA will review the operative agreements and legal opinions for the transaction prior to closing.

To access ratings and relevant documents, click here.
Click here to view the report.

Related Publications

• Consumer Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology

• ESG Global Rating Methodology

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) 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 pursuant to the Temporary Registration Regime. 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.