KBRA Assigns Preliminary Ratings to PowerPay Issuance Trust 2026-1

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to three classes of notes issued by PowerPay Issuance Trust 2026-1 (“PowerPay 2026-1”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements and health and wellness procedures. This transaction represents PowerPay’s third 144A ABS securitization.

PowerPay 2026-1 will issue five classes of notes totaling $350.2 million, which is expected to be collateralized by $357.4 million of consumer loans used for home improvement and health and wellness procedures.

Founded in 2018 and headquartered in Wayne, PA, PowerPay, LLC (“PowerPay” or the “Company”) operates a digital platform (the “PowerPay Platform”) that facilitates point-of-sale financing solutions to consumers across the home improvement and health and wellness markets. Since inception, the Company has funded over $2.6 billion across approximately 150,000 transactions. PowerPay currently offers financing in all 50 states and the District of Columbia through its funding partners via the PowerPay Platform. PowerPay provides loan servicing and collection services for PowerPay 2026-1.

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 PowerPay LLC, as well as several business updates with the Company since that time. Operative agreements and legal opinions 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.

Doc ID: 1017036