NEW YORK--(BUSINESS WIRE)--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 "PAID 2026-1†), an unsecured consumer loan ABS transaction. PAID 2026-1 has initial hard credit enhancement levels of 84.86% for the Class A-1 Notes to 2.33% for the Class F-2 Notes. Credit enhancement is comprised of overcollateralization, subordination (except for the Class F-2 Notes), cash reserve accounts funded at closing, and exc ...

Core 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].

Core 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]

Core Insights - KBRA has assigned preliminary ratings to 13 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-7 and Pagaya AI Debt Trust 2025-7, collectively known as PAID 2025-7, which is an unsecured consumer loan ABS transaction [1][2] - The total issuance of PAID 2025-7 amounts to $500.0 million, with initial hard credit enhancement levels ranging from 82.79% for Class A-1 Notes to 1.36% for Class F Notes [1][2] - Pagaya Technologies Ltd., the parent company, is a financial technology firm specializing in AI-driven credit analysis and is listed on NASDAQ under the ticker PGY [3] Credit Enhancement and Methodology - Credit enhancement for PAID 2025-7 includes overcollateralization, subordination (except for Class F Notes), a cash reserve account funded at closing, and excess spread [1] - KBRA utilized 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] 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. [3] - This transaction marks the 51st publicly rated securitization sponsored by Pagaya Structured Products LLC and its affiliates [3]