Pagaya Technologies .(US:PGY) Businesswire·2025-12-02 18:18Core Viewpoint - KBRA has assigned preliminary ratings to 15 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-8 and Pagaya AI Debt Trust 2025-8, indicating a significant unsecured consumer loan ABS transaction with varying levels of credit enhancement [1][2]. Company Overview - 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 under the ticker PGY [3]. - Pagaya Technologies operates in the financial technology sector, focusing on the lending marketplace and utilizing AI-driven credit and analysis technology [3]. Transaction Details - The total issuance of notes for PAID 2025-8 amounts to $498.5 million, with KBRA rating all classes of notes except for the Certificates, Class FR Securities, and Class F2R Securities [2]. - The transaction features initial hard credit enhancement levels ranging from 83.40% for Class A-1 Notes to 1.83% for Class F Notes, which includes overcollateralization, subordination (excluding Class F Notes), cash reserve accounts, and excess spread [1]. Methodology and Analysis - 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 static pool data [4]. - The agency also considered operational reviews of Pagaya and its Platform Sellers, along with periodic update calls prior to the transaction's closing [4].