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Financial services

KBRA Assigns Preliminary Ratings to Pagaya AI Debt Grantor Trust 2025-6 and Pagaya AI Debt Trust 2025-6

Strategic Insights

— 1 min read

Pagaya AI Debt Grantor Trust 2025-6 and Pagaya AI Debt Trust 2025-6, collectively known as PAID 2025-6, is an unsecured consumer loan ABS transaction that has received preliminary ratings from Kroll Bond Rating Agency, LLC (KBRA). The transaction features initial hard credit enhancement levels ranging from 82.04% for the Class A-1 Notes to 1.46% for the Class F Notes. PAID 2025-6 will issue 13 classes of notes totaling $500.0 million, with KBRA rating all classes except the Certificates and the Class FR Securities. This transaction is the 49th publicly rated securitization sponsored by Pagaya Structured Products LLC and its affiliates.

Key Takeaways:

  • PAID 2025-6 is an unsecured consumer loan ABS transaction that features a fully prefunded structure with no collateral funded at closing.
  • The transaction has initial hard credit enhancement levels ranging from 82.04% for the Class A-1 Notes to 1.46% for the Class F Notes.
  • PAID 2025-6 will issue 13 classes of notes totaling $500.0 million, with KBRA rating all classes except the Certificates and the Class FR Securities.
  • Pagaya Structured Products LLC, the sponsor and administrator, is a fully owned subsidiary of Pagaya US Holding Company LLC, which is 100% owned by Pagaya Technologies Ltd.
  • Pagaya Technologies is a financial technology company listed on the NASDAQ (PGY) that uses AI-driven credit and analysis technology.
  • KBRA applied its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology in analyzing the transaction's proposed capital structure.
  • Pagaya sponsors the 49th publicly rated securitization through its subsidiary Pagaya Structured Products LLC.
  • Operative agreements and legal opinions will be reviewed prior to closing.

Statistics:

  • 82.04% - Initial hard credit enhancement levels for the Class A-1 Notes.
  • 1.46% - Initial hard credit enhancement levels for the Class F Notes.
  • $500.0 million - Total amount of notes issued.
  • 13 - Number of classes of notes issued.
  • 49 - Number of publicly rated securitizations sponsored by Pagaya Structured Products LLC and its affiliates.
  • 100% - Ownership of Pagaya US Holding Company LLC by Pagaya Technologies Ltd.
  • 12 - Classes of notes issued by Pagaya AI Debt Grantor Trust 2025-6 and Pagaya AI Debt Trust 2025-6.

Sources:

  • Kroll Bond Rating Agency, LLC (KBRA)
  • Pagaya Structured Products LLC
  • Pagaya US Holding Company LLC
  • Pagaya Technologies Ltd. (listed on the NASDAQ as PGY)
  • Pagaya Investments US LLC
  • Pagaya Technologies Ltd.

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