KBRA Assigns Preliminary Ratings to Stream Innovations 2024-1 Issuer Trust
June 24 2024 - 11:58AM
Business Wire
KBRA assigns preliminary ratings to three classes of notes
issued by Stream Innovations 2024-1 Issuer Trust (“STRE 2024-1”),
an asset-backed securitization collateralized by a pool of consumer
loans used for home improvements. This transaction represents
Stream Innovation Inc.’s inaugural 144A ABS securitization.
STRE 2024-1 will issue three classes of notes totaling $194.59
million, collateralized by $211.51 million of receivables.
Stream Innovations Inc. (“Stream” or the “Company”) was founded
in 2020, is based in Conshohocken, Pennsylvania and provides
financing for customers of Power Home Remodeling Group, LLC (“Power
Home” or the “Merchant”), under the Stream Program. Stream was
founded and is owned by several of the owners of Power Home, the
COO of Power Home and the CEO of Stream. Power Home, founded in
1992 and headquartered in Chester, Pennsylvania, is a home
remodeling company focused on installation and construction of
residential energy efficiency and home improvement projects. Power
Home has 21 offices in the U.S. and has completed over 1 million
home improvement projects since inception. Power Home’s primary
home improvement projects are for the installation of windows,
siding, insulation, doors and roofs. Power Home currently has over
3,700 employees and operates in 25 states.
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 Stream Innovation Inc.,
as well as several business updates with the Company since that
time. 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: 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: 1004772
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Analytical Contacts
Hollie Reddington, Senior Director (Lead Analyst) +1
646-731-3375 hollie.reddington@kbra.com
Zarif Ahmed, Associate Director +1 646-731-1367
zarif.ahmed@kbra.com
Brendan Buckley, Senior Analyst +1 646-731-1318
brendan.buckley@kbra.com
Eric Neglia, Head of Commercial and Consumer ABS (Rating
Committee Chair) +1 646-731-2456 eric.neglia@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com