Pagaya Technologies .(US:PGY) Businesswire·2026-01-23 21:13Core Insights - KBRA assigns preliminary ratings to 15 classes of notes issued by Pagaya AI Debt Grantor Trust 2026-1 & Pagaya AI Debt Trust 2026-1, collectively known as PAID 2026-1, which is an unsecured consumer loan ABS transaction [1][2] Group 1: Transaction Details - PAID 2026-1 will issue 15 classes of notes totaling $595.80 million, with KBRA rating all classes except for the Certificates, Class FR Securities, and Class F2R Securities [2] - The transaction features initial hard credit enhancement levels ranging from 84.86% for Class A-1 Notes to 2.33% for Class F-2 Notes, utilizing overcollateralization, subordination, cash reserve accounts, and excess spread [1] Group 2: 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 operates in the lending marketplace, leveraging AI-driven credit and analysis technology [3] Group 3: 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 data [4] - The agency conducted operational reviews of Pagaya and its Platform Sellers, along with periodic update calls, and will review operative agreements and legal opinions prior to closing [4]