KBRA Assigns Preliminary Ratings to GreenSky Home Improvement Issuer Trust 2024-1
25 Julio 2024 - 1:43PM
Business Wire
KBRA assigns preliminary ratings to five classes of notes issued
by GreenSky Home Improvement Issuer Trust 2024-1 ("GSKY 2024-1"),
an asset-backed securitization collateralized by a pool of consumer
loans used for home improvements.
GSKY 2024-1 represents the fifth 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 first
securitization issued under the GreenSky Home Improvement Issuer
Trust (GSKY) shelf.
GSKY 2024-1 will issue five classes (and up to eight tranches)
of notes totaling $739.073 million, collateralized by 95% of
economic participation interests (the "Participations") in a pool
of approximately $850 million consumer loans used to finance home
improvement products and services originated by Goldman Sachs Bank
USA (the "Loan Originator") and Synovus Bank (the "Origination
Partner") under the GreenSky Program.
Founded in 2006 and headquartered in Atlanta, GA, GreenSky
administers the GreenSky Program for merchants and lenders that
facilitates point-of-sale financing for consumers in the home
improvement markets. In March 2022, GreenSky was acquired by The
Goldman Sachs Group, Inc. and became an indirect, wholly-owned
subsidiary of the Loan Originator, a New York state-chartered bank.
The Loan Originator originated substantially all loans under the
GreenSky Program between mid-August 2022 and mid-March 2024.
Effective March 15th, 2024, the Loan Originator sold GreenSky (and
certain associated assets) to a consortium of institutional
investors led by Sixth Street, sold all outstanding loans made by
the Loan Originator through the GreenSky Program to Synovus Bank
and the Loan Originator ceased to own or originate loans made
through the GreenSky Program. Approximately 86% of the loans in the
transaction collateral pool were originated by the Loan Originator
and approximately 14% were originated by the Origination
Partner.
KBRA applied its Consumer Loan ABS Global Rating Methodology, as
well as its Global Structured Finance Counterparty Methodology and
ESG Global Rating 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.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: Consumer Loan ABS Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG 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.
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) is a full-service credit
rating agency 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 by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005163
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Analytical Contacts
Melvin Zhou, Managing Director (Lead Analyst) +1 646-731-2412
melvin.zhou@kbra.com
Hollie Reddington, Senior Director +1 646-731-3375
hollie.reddington@kbra.com
Dan DePaulo, Senior Analyst +1 646-731-1259
dan.depaulo@kbra.com
Rahel Avigdor, Managing Director (Rating Committee Chair) +1
646-731-1203 rahel.avigdor@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com