KBRA Assigns Preliminary Ratings to Aqua Finance Issuer Trust 2025-B

Strategic Insights -

KBRA has assigned preliminary ratings to four classes of notes issued by Aqua Finance Issuer Trust 2025-B, a securitization collateralized by marine and recreational vehicle contracts, as well as home improvement contracts. The securitization will issue four classes of notes totaling $368.61 million, backed by $404.2 million in receivables. The initial credit enhancement levels for the notes range from 44.10% for the Class A notes to 9.30% for the Class D notes. The credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.

Key Takeaways:

  • KBRA assigned preliminary ratings to four classes of notes issued by Aqua Finance Issuer Trust 2025-B, a securitization collateralized by marine and recreational vehicle contracts and home improvement contracts.
  • The securitization will issue four classes of notes totaling $368.61 million, backed by $404.2 million in receivables.
  • Initial credit enhancement levels range from 44.10% for the Class A notes to 9.30% for the Class D notes, consisting of overcollateralization, subordination of junior note classes, a cash reserve account, and excess spread.
  • Aqua Finance, Inc., a consumer finance company founded in 1985, was acquired by Athene Holding Ltd in July 2022.
  • KBRA applied its Auto Loan ABS Global Rating Methodology, Consumer Loan ABS Global Rating Methodology, General Global Rating Methodology for Asset-Backed Securities, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology in its analysis.
  • KBRA conducted regular due diligence calls with Aqua and will review operative agreements and legal opinions prior to closing.

Statistics:

  • Total notes issued: $368.61 million
  • Total receivables: $404.2 million
  • Initial credit enhancement levels:

+ Class A notes: 44.10%

+ Class B notes: 24.45%

+ Class C notes: 14.15%

+ Class D notes: 9.30%

Sources:

  • Kroll Bond Rating Agency, LLC (KBRA) news release, date not specified
  • Aqua Finance Issuer Trust 2025-B offering circular, date not specified (no date provided in the original text)
  • KBRA Auto Loan ABS Global Rating Methodology, date not specified
  • KBRA Consumer Loan ABS Global Rating Methodology, date not specified
  • KBRA General Global Rating Methodology for Asset-Backed Securities, date not specified
  • KBRA Global Structured Finance Counterparty Methodology, date not specified
  • KBRA ESG Global Rating Methodology, date not specified