Dec 2, 2025 1:18 PM Eastern Standard Time KBRA Assigns Preliminary Ratings to Pagaya AI Debt Grantor Trust 2025-8 & Pagaya AI Debt Trust 2025-8 Share NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 15 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-8 & Pagaya AI Debt Trust 2025-8 (collectively "PAID 2025-8†), an unsecured consumer loan ABS transaction. PAID 2025-8 has initial hard credit enhancement levels of 83.40% for the Class A-1 Notes to 1.83% for the Class F Notes. Credit ...

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]

Core Viewpoint - KBRA has assigned preliminary ratings to four classes of notes issued by Upstart Securitization Trust 2025-3, which is a $320 million consumer loan asset-backed security (ABS) collateralized by unsecured consumer loans [1][3]. Summary by Relevant Sections Ratings and Credit Enhancement - The preliminary ratings indicate initial credit enhancement levels of 56.45% for Class A notes, 43.50% for Class B notes, 33.30% for Class C notes, and 20.50% for Class D notes [2]. - Credit enhancement is composed of overcollateralization, excess spread, a non-declining cash reserve account, and subordination (excluding Class D notes) [2]. Company Background - UPST 2025-3 marks the 47th ABS securitization backed by unsecured consumer loans originated through Upstart Network, Inc., a wholly-owned subsidiary of Upstart Holdings, Inc. (NASDAQ: UPST) [3]. Methodology and Analysis - KBRA utilized its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology in analyzing the portfolio pool data, underlying collateral pool, and capital structure [4]. - The analysis included operational reviews of Upstart and periodic update calls with the company, with operative agreements and legal opinions to be reviewed prior to closing [4].