KBRA assigns preliminary ratings to FREED ABS Trust 2022-4FP

NEW YORK–(BUSINESS WIRE). The preliminary ratings reflect initial credit enhancement levels of 67.85% for the Class A Notes, 45.10% for the Class B Notes, 34.70% for the Class C Notes and 18.30% for the Class D Notes contrary. The credit enhancement consists of over-collateralisation, subordination (excluding the Class D Notes), a reserve account that will be funded in subsequent periods after closing and an excess spread.

This transaction represents the fourteenth ABS securitization backed by unsecured consumer loans issued by Freedom Financial Asset Management, LLC (“FFAM” or the “Company”). Freedom Financial Network (“FFN”), the parent company of FFAM, is a San Mateo, California based company with offices in Tempe, AZ. Founded in 2002, FFN, through its four subsidiaries (FFAM, Freedom Debt Relief, LLC (“FDR”), provides consumer financial solutions including installment loans, debt restructuring, home equity lines of credit (“HELOCs”) and financial education. , Lendage, LLC (“Lendage”) ) and bills.com) and a fund (“Freedom Consumer Credit Fund” or “FCCF”). Since 2002, two private equity firms, Vulcan Capital and Stone Point Capital, have invested in Pantheon Partners, LLC, FFN’s parent company.

KBRA applied its Global Rating Methodology for Consumer Loan ABS, its Global Structured Finance Counterparty Methodology and its ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, proposed capital structure and historical static pool data from FFAM. KBRA considered its operational review of Freedom and regular phone calls with the company. Operational agreements and legal opinions are reviewed prior to completion.

To access reviews and relevant documents, click here.

click here to view the report.

Related Publications


Learn more about key credit considerations, sensitivity analysis that considers what factors may affect those credit ratings and how they might result in an upgrade or downgrade, and ESG factors (if they are a material factor in the change in credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all significant sources used to produce the credit rating and information on the methodology(ies) (including, where applicable, any significant models and sensitivity analyzes of the relevant key rating assumptions) used to determine the credit rating is available in the Information Disclosure Form(s) is located here.

Information about the meaning of each rating category can be localized here.

Additional disclosures related to this rating action are available in the Information Disclosure Forms referenced above. For more information on KBRA’s policies, methods, rating scales and disclosures, visit www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service rating agency registered as an NRSRO with the US Securities and Exchange Commission. 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 under the Temporary Registration Regime. In addition, KBRA has been designated by the Ontario Securities Commission as the designated rating organization for issuers of asset-backed securities to file a prospectus or prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a provider of credit ratings.

Previous Invesco Unveils Europe's Cheapest Long-Term US Treasury ETF | ETF strategy
Next The airline market is likely to see an expansion of tradable products