KBRA Assigns Preliminary Ratings to Stream Innovations 2024-2 Issuer Trust

NEW YORK-KBRA assigns preliminary ratings to three classes of notes issued by Stream Innovations 2024-2 Issuer Trust (“STRE 2024-2”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements. The ratings reflect the initial credit enhancement levels ranging from 15.55% for the Class A notes to 4.85% for the Class C notes. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes (except for the Class C notes), a cash reserve account funded at closing, and excess spread.

STRE 2024-2 is Stream Innovations Inc. (“Stream” or the “Company”) second ABS securitization. STRE 2024-2 will issue three classes of notes totaling $239.27 million. At closing, the transaction consists of approximately $175.15 million receivables, with an expected collateral balance of $250.15 million after completion of the two-month prefunding period.

Stream 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 the installation and construction of residential energy efficiency and home improvement projects. Power Home has 23 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 4,000 employees and operates in 27 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

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: 1006350