KBRA Assigns Preliminary Ratings to Neighborly Issuer LLC, Series 2026-1 Senior Secured Notes

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to Neighborly Issuer LLC, Series 2026-1 (Neighborly 2026-1), a whole business securitization (WBS). Neighborly 2026-1 represents the Issuer’s fifth series of notes issued from existing master trust, which is collateralized by substantially all of the revenue-generating assets related to the Neighborly securitization brands in the United States and certain international revenue rights.

In conjunction with the issuance of the Series 2026-1 Notes, the Series 2023-1 Class A-2 Notes are expected to be repaid in full, at which time KBRA expects to withdraw the ratings. At that time, KBRA also anticipates affirming the ratings on the Issuer’s outstanding Series 2021-1 Class A-1-VFN, Class A-1-LR and Class A-2 Notes; Series 2022-1 Class A-1-LR and Class A-2 Notes; Series 2023-1 Class A-1-VFN and Class A-1-LR Notes; and the Series 2024-1 Class A-1-VFN Notes (collectively, the Existing Notes and, together with the Series 2026-1 Notes, the Notes).

Founded in 1981, Neighborly (the Company) is one of the largest providers and franchisors of do-it-for-me (“DIFM”) home services in the United States. The Company operates across all 50 US states, the District of Columbia and five additional countries through four service segments: Repair, Maintain, Enhance & Specialty and European. Neighborly manages a portfolio of 27 brands (19 of which are contributed to the securitization). Supported by over 4,600 active territories, Neighborly generated approximately $4.6 billion in system-wide sales (SWS) for the twelve months ended June 30, 2026 (the Cut-off Date). The collateral includes existing and future domestic franchise agreements and development agreements, international and domestic license agreements, royalties on company-owned service business profits, third party vendor rebates and product margin, other franchise fees and intellectual property.

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Methodologies

• Structured Finance: Global Structured Finance Counterparty Methodology
• ABS: Whole Business Securitization (WBS) ABS 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.

Information on certain affiliations between directors of KBRA Ratings and rated entities or related third parties 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 US 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. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. 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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