Kroll Bond Rating Agency (KBRA) has announced preliminary ratings for three classes of notes issued by PowerPay Issuance Trust 2025-1, an asset-backed securitization backed by a pool of consumer loans used for home improvements and elective medical procedures. This marks PowerPay’s second 144A ABS securitization, underscoring the company’s growing footprint in the consumer lending market.
Under the new transaction, PowerPay 2025-1 will issue four classes of notes totaling $556.1 million, backed by $564.5 million in consumer loans. These loans are used by homeowners and individuals financing elective medical services. The structure includes a 90-day prefunding period, during which an initial receivables pool of $429.5 million about 76% of the total will be funded. Additionally, a prefunded account deposit of $132.98 million will be available to purchase new receivables up to $135 million during the prefunding window.
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Founded in 2018 and headquartered in Wayne, Pennsylvania, PowerPay, LLC has established itself as a leader in point-of-sale financing for consumers. Through its PowerPay Platform, the company enables customers to access quick and flexible loans for home improvement projects and elective medical procedures. Since its inception, PowerPay has funded over $2.1 billion across approximately 120,000 transactions and operates across all 50 U.S. states and the District of Columbia. The company also provides loan servicing and collection services for the PowerPay 2025-1 transaction.
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KBRA conducted its analysis using several key methodologies, including its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology. As part of its review, KBRA assessed PowerPay’s operational performance, historical loan data, and capital structure under stress scenarios. The agency also considered prior reviews and recent business updates with the company. All operative agreements and legal opinions will be finalized and reviewed prior to the deal’s closing.
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The successful issuance of PowerPay 2025-1 represents another milestone for the company, highlighting the strength of its digital financing platform and growing investor confidence in its loan portfolio performance.
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