KBRA Assigns Preliminary Ratings to ACHD Trust 2026-DS1

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to three classes of notes issued by ACHD Trust 2026-DS1 (“ACHD 2026-DS1”), an ABS transaction collateralized by a pool of debt settlement (“DS”) fees associated with enrolled debts from a static pool of DS customers.

ACHD 2026-DS1 will issue three classes of notes totaling $151.4 million. The transaction benefits from credit enhancement levels that are sufficient to withstand KBRA’s rating stresses. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class C notes), a cash reserve account, and excess spread.

This transaction represents Freedom Debt Relief, LLC d/b/a Achieve Debt Relief’s (“Achieve” or “Company”) second securitization collateralized by DS fees. The inaugural transaction, ACHD Trust 2025-DS1, was issued in December 2025.

Achieve is a wholly owned subsidiary of Freedom Financial Network Funding, LLC (“FFNF”). FFNF is a San Mateo, CA, based company with operations in Tempe, AZ. It was founded in 2002 and offers consumer financial solutions including installment loans originated by a partner bank, debt restructuring, home equity lines of credit, and financial education, through subsidiary companies — Freedom Financial Asset Management, LLC, Achieve and Lendage, LLC d/b/a Achieve Home Loans. Two private equity firms, Cercano Capital and Stone Point Capital, have invested in the common equity of Pantheon Freedom, Inc., the ultimate parent holding company of Achieve.

KBRA applied its General Global Rating Methodology for Asset Backed Securities as well as its Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure, and Achieve’s historical static pool data. KBRA also considered its operational review of the Master Backup Servicer and the Master Backup Servicer Subcontractor, as well as periodic due diligence discussions with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• Structured Finance: Global Structured Finance Counterparty 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), 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.

Doc ID: 1015394