NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three categories of notes issued by CFMT 2021-GRN1 Issuer Trust (“CFMT 2021-GRN1”), an ABS home improvement loan transaction.
CFMT 2021-GRN1 will issue three classes of notes totaling $ 261.779 million, secured by economic participation interest (the “Participations”) in a pool of approximately $ 285.47 million of consumer loans used to fund products. and home improvement services issued by third-party banks under the GreenSky program. The Participations will be sold from Cascade Funding LP – Series 1, an entity owned by funds managed by Waterfall Asset Management, LLC, to CFMT 2021-GRN1. The transaction has initial credit enhancement levels of 21.11% for Class A Notes, 15.86% for Class B Notes and 8.76% for Class C Notes. consists of overcollateralisation, subordination (except for Class C notes), reserve fund funded at closing and excess margin.
Founded in 2006 and based in Atlanta, GA, GreenSky, LLC (together with its subsidiaries, “GreenSky” or the “Company”) operates a platform for merchants that facilitates point-of-sale financing for consumers in the field of home improvement and elective health care. markets. Loans are issued by GreenSky’s third-party banking partners, as part of the GreenSky platform, with GreenSky providing loan management and collection services. GreenSky did not organize and initiate the ABS transaction and is not involved in the structuring of the ABS transaction or the sale of the notes.
KBRA applied its Global Consumer Loan ABS rating methodology and Global Structured Finance Counterparty methodology as part of its analysis of the collateral pool underlying the transaction and the proposed capital structure. KBRA also conducted an operational assessment of GreenSky, as well as a review of the legal structure of the transaction and transaction documents. KBRA will review the operational agreements and legal opinions of the transaction prior to closing.
Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (where they are a major driver of change in credit rating or rating outlook) can be found in the full rating report mentioned above.
A description of all substantially significant sources that were used in preparing the credit rating and information on the method (s) (including models and sensitivity analyzes of relevant key rating assumptions, if any) used to determine 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 information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures can be found at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.