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KBRA Assigns Preliminary Ratings to Pagaya AI Debt Grantor Trust 2025-5 and Pagaya AI Debt Trust 2025-5

1. KBRA assigns preliminary ratings to Pagaya's new ABS transaction, PAID 2025-5. 2. PAID 2025-5 has credit enhancements from 81.69% to 3.79% across note classes. 3. Total issuance is $392 million with 13 classes rated by KBRA. 4. Pagaya Technologies utilizes AI in lending, enhancing market competitiveness. 5. This marks Pagaya's 47th rated securitization, showcasing consistent market presence.

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FAQ

Why Bullish?

The strong credit enhancement and large issuance suggest financial stability, which could boost investor confidence in PGY.

How important is it?

The ratings signify operational strength and market trust, critical for investor interest in PGY.

Why Short Term?

The immediate ratings and successful issuance could positively influence PGY's stock in the near term.

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- NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 12 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-5 and Pagaya AI Debt Trust 2025-5 (collectively “PAID 2025-5”), an unsecured consumer loan ABS transaction. PAID 2025-5 has initial hard credit enhancement levels of 81.69% for the Class A-1 Notes to 3.79% for the Class F Notes. Credit enhancement is comprised of overcollateralization, subordination (except for the Class F Notes), a cash reserve account funded at closing, and excess spread. PAID 2025-5 will issue 13 classes of notes totaling $392.0 million with KBRA rating the Class A-1 through Class F Notes, Class A, Class AB, Class ABC, Class ABCD, and Class EF Notes. KBRA will not be providing ratings on the Certificates or the FR Securities. PAID 2025-5 is a fully prefunded transaction where there will be no collateral funded at closing. Pagaya Structured Products LLC, the sponsor and administrator, is a fully owned subsidiary of Pagaya US Holding Company LLC (formerly known as Pagaya Investments US LLC), which is 100% owned by Pagaya Technologies Ltd. (“Pagaya Technologies”), an Israeli corporation listed on the NASDAQ (PGY). Pagaya Technologies is a financial technology company in the lending marketplace that uses AI-driven credit and analysis technology. This transaction is the 47th publicly rated securitization sponsored by Pagaya Structured Products LLC (collectively with its affiliates, “Pagaya” or the “Company”). KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s proposed capital structure and Pagaya’s historical static pool data. KBRA considered its operational reviews of Pagaya and each of the Platform Sellers, as well as periodic update calls with the Company and Platform Sellers. KBRA has recently conducted surveillance on each platform’s KBRA-rated securitizations. Operative agreements and legal opinions will be reviewed prior to closing. To access ratings and relevant documents, click here. Click here to view the report. 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1010370 More News From Kroll Bond Rating Agency, LLC

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