KBRA assigns preliminary ratings to three classes of notes issued by PowerPay Issuance Trust 2024-1 (“PowerPay 2024-1”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements and elective medical. This transaction represents PowerPay LLC’s inaugural 144A ABS securitization.

PowerPay 2024-1 will issue three classes of notes totaling $118.893 million, collateralized by $130.94 million of receivables.

Founded in 2018 and headquartered in King of Prussia, PA, PowerPay, LLC (“PowerPay” or the “Company”) operates a digital platform (the “PowerPay Platform”) that facilitates point-of-sale financing solutions to consumers across the home improvement and elective medical markets. As of February 29, 2024 the Company had 152 full-time employees. Since inception, the Company has funded over $1.2 billion across approximately 45,000 transactions. PowerPay currently offers financing in all 50 states and the District of Columbia through its credit union partners via the PowerPay Platform. One of these partnerships is with Chartway Federal Credit Union (the “Chartway” or the “Seller”), which will be the sole contributor of collateral for the PowerPay 2024-1 transaction. Paramount Capital Group, LLC, (PCG), an unrelated third-party servicer, provides loan servicing and collection services for loans originated through the PowerPay Platform and for PowerPay 2024-1.

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 static pool data and the underlying collateral pool and stressed the capital structure based upon its stress case cash flow assumptions. KBRA considered its operational review of PowerPay LLC, as well as several business updates with the Company since that time. Operative agreements and legal opinions will be reviewed prior to closing.

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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) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003589

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