KBRA Assigns Preliminary Ratings to Aqua Finance Trust 2024-A

KBRA assigns preliminary ratings to four classes of notes issued by Aqua Finance Trust 2024-A (“Aqua 2024-A”), an asset-backed securitization collateralized by marine and recreational vehicle contracts as well as home improvement contracts.

Aqua 2024-A will issue four classes of notes totaling $418.53 million, collateralized by $450.04 million receivables. Aqua 2024-A has initial credit enhancement levels ranging from 37.70% for the Class A notes to 7.50% for the Class D notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account, and excess spread.

Aqua Finance, Inc. (“Aqua” or the “Company”), founded in 1985 and incorporated in January 1988, is a consumer finance company operating in all 50 states. On July 29, 2022, Athene Holding Ltd (“Athene”), a retirement services company acquired a controlling stake in Aqua. Prior to Athene’s acquisition, the Company was majority owned and controlled by a Blackstone managed fund.

KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Consumer Loan ABS Global Rating Methodology, General Global Rating Methodology for Asset-Backed Securities, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of Aqua, as well as regular due diligence calls with Aqua. Operative agreements and legal opinions will be reviewed prior to closing.

To access rating and relevant documents, click here.

Click here to view the report.

Methodologies

• ABS: Auto Loan ABS Global Rating Methodology
• ABS: Consumer Loan ABS Global Rating Methodology
• ABS: General Global Rating Methodology for Asset Backed Securities
• 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: 1006058

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