KBRA Assigns Preliminary Ratings to GreenSky Home Improvement Issuer Trust 2025-2

GreenSky Home Improvement Issuer Trust 2025-2 ("GSKY 2025-2") has been assigned preliminary ratings by Kroll Bond Rating Agency, LLC (KBRA) for five classes of notes totaling $681.009 million. The securitization is collateralized by a pool of approximately $750 million consumer loans used for home improvements originated by Goldman Sachs Bank USA and Synovus Bank under the GreenSky Program. The transaction represents the eighth 144A securitization of home improvement loans originated through the GreenSky Program, which facilitates point-of-sale financing for consumers in the home improvement markets.

Key Takeaways:

• The GreenSky Program was administered by GreenSky, LLC, a company founded in 2006 and headquartered in Atlanta, GA, for merchants and lenders that facilitates point-of-sale financing for consumers in the home improvement markets.
• In March 2022, GreenSky was acquired by The Goldman Sachs Group, Inc. and became an indirect, wholly-owned subsidiary of the Loan Originator, a New York state-chartered bank.
• The Loan Originator originated substantially all loans under the GreenSky Program between mid-August 2022 and mid-March 2024.
• The Loan Originator sold GreenSky and certain associated assets to a consortium of institutional investors led by Sixth Street, and sold all outstanding loans made by the Loan Originator through the GreenSky Program to Synovus Bank.
• Approximately 13.2% of the loans in the transaction collateral pool were originated by the Loan Originator, and approximately 86.8% were originated by the Origination Partner, Synovus Bank.
• KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology during its analysis of the transaction.
• The transaction marks the fourth securitization issued under the GreenSky Home Improvement Issuer Trust (GSKY) shelf and the eighth 144A securitization of home improvement loans originated through the GreenSky Program.

Statistics:

• Total notes issued: $681.009 million
• Total collateral: approximately $750 million
• Number of loans: not specified
• Percentage of loans originated by the Loan Originator: 13.2%
• Percentage of loans originated by the Origination Partner (Synovus Bank): 86.8%
• Number of tranches: up to eight
• Date of asset sale: March 15, 2024
• Acquisition of GreenSky: March 2022

Sources:

• Kroll Bond Rating Agency, LLC
• GreenSky, LLC
• The Goldman Sachs Group, Inc.
• Sixth Street
• Synovus Bank
• KBRA Consumer Loan ABS Global Rating Methodology
• KBRA Global Structured Finance Counterparty Methodology
• KBRA ESG Global Rating Methodology