NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA assigns preliminary ratings to three classes of notes issued by GoodLeap Home Improvement Solutions Trust 2024-1 (“GDLP 2024-1”), a $378.3 million asset-backed securitization collateralized by a pool of residential home improvement loans originated by GoodLeap, LLC (“GoodLeap” or the “Company”). The preliminary ratings reflect the initial credit enhancement levels ranging from 20.75% for the Class A notes to 7.60% for the Class C notes as a percentage of 95% of the pool balance.
GoodLeap is headquartered in Roseville, California and offers its home improvement loans at the point-of-sale to mostly prime credit quality homeowners through its partnerships with more than 1,000 approved installers. The home improvement loans are used to finance sustainable projects such as LED lighting, heating venting and air conditioning (HVAC), home performance upgrades (e.g. smart home technology), windows and doors, water efficiency, generators and roofs. GoodLeap offers standard installment loans as well as promotional loan repayment products that allow the borrower to make lower monthly payments during the initial loan period. The collateral pool of GDLP 2024-1 will include approximately $428.8 million of home improvement loans where approximately 23.2% of the pool has a promotional period.
KBRA applied its Consumer Loan ABS Global Rating Methodology as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In applying the methodologies, KBRA analyzed GoodLeap’s portfolio pool data, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA considered its operational review of GoodLeap, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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Methodologies
- ABS: Consumer Loan ABS Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
Doc ID: 1006308
Contacts
Analytical Contacts
Michael Polvere, Associate Director (Lead Analyst)
+1 646-731-3339
michael.polvere@kbra.com
Vicky Xiao, Senior Analyst
+1 646-731-1422
vicky.xiao@kbra.com
Melvin Zhou, Managing Director (Rating Committee Chair)
+1 646-731-2412
melvin.zhou@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director
+1 646-731-2369
arielle.smelkinson@kbra.com
