KBRA Assigns Preliminary Ratings to GreenSky Home Improvement Issuer Trust 2026-A

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to five classes of notes issued by GreenSky Home Improvement Issuer Trust 2026-A ("GSKY 2026-A"), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements.

GSKY 2026-A represents the eleventh rated 144A securitization of home improvement loans originated through the lending program administered by GreenSky, LLC (“GreenSky” or the “Company”) on behalf of federally-insured, federal or state chartered lenders in connection with the lenders’ origination of consumer loans through a network of merchants (the “GreenSky Program”) and the seventh securitization issued under the GreenSky Home Improvement Issuer Trust (GSKY) shelf.

GSKY 2026-A will issue five classes (seven tranches) of notes totaling $700.0 million, collateralized by 100% of economic participation interests (the "Participations") in a pool of approximately $760.9 million consumer loans used to finance home improvement products and services originated by Pinnacle Bank d/b/a Synovus Bank and Comenity Capital Bank (the "Approved Origination Partners") under the GreenSky Program. A portion of the collateral supporting the transaction includes Participations in "Open Purchase Window Loans", which are loans that have a remaining "purchase window" during which the related borrower is permitted to draw-down additional funds available under the related loan documents, up to a maximum amount.

Founded in 2006 and headquartered in Atlanta, GA, GreenSky (together with its affiliates that provide, directly or indirectly, any of the services related to the GreenSky Program) administers the GreenSky Program for merchants and lenders that facilitates point-of-sale financing for consumers in the home improvement markets.

KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology as part of its analysis of the static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of GreenSky, as well as several business updates with the Company. Operative agreements and legal opinions for the transaction will be reviewed prior to closing.

To access ratings and relevant documents, click here.

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Methodologies

• ABS: Consumer Loan ABS Global Rating Methodology
• 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.

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