Pagaya Technologies .(US:PGY) Businesswire·2025-10-29 23:13Core Insights - KBRA has assigned preliminary ratings to nine classes of notes issued by Pagaya Point of Sale Holdings Grantor Trust 2025-2 and Pagaya Point of Sale Holdings Trust 2025-2, collectively known as POSH 2025-2, which is a point-of-sale unsecured consumer loan ABS transaction [1][2] Summary by Category Transaction Structure - POSH 2025-2 will issue 10 classes of notes totaling $300 million, with ratings provided for Class A through Class F Notes, Class AB, Class ABC, and Class ABCD [2] - The transaction is fully prefunded, meaning no collateral will be funded at closing, and includes an 18-month revolving period [2] - Upon the end of the revolving period or an amortization event, the amortization period will commence, during which reinvestment is not allowed, and distributions will be made sequentially to noteholders [2] Credit Enhancement - Initial hard credit enhancement levels range from 34.98% for Class A Notes to 2.18% for Class F Notes, which includes overcollateralization, subordination (except for Class F), a cash reserve account, and excess spread [1] Company Background - Pagaya Structured Products LLC, the sponsor and administrator of the transaction, is a wholly owned subsidiary of Pagaya US Holding Company LLC, which is fully owned by Pagaya Technologies Ltd., an Israeli corporation listed on NASDAQ (PGY) [3] - Pagaya Technologies is a financial technology company specializing in the lending marketplace, utilizing AI-driven credit and analysis technology [3] Rating Methodology - KBRA applied its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology in analyzing the transaction's capital structure and Pagaya's historical data [4] - Operational reviews of Pagaya and each of the Platform Sellers were considered, along with periodic update calls and recent surveillance on each platform's KBRA-rated securitizations [4]