KBRA Assigns Preliminary Ratings to ACHD Trust 2026-DS1
KBRA assigns preliminary ratings to three classes of notes issued by ACHD Trust 2026-DS1 (“ACHD 2026-DS1”), an ABS transaction collateralized by a pool of debt settlement (“DS”) fees associated with enrolled debts from a static pool of DS customers.
ACHD 2026-DS1 will issue three classes of notes totaling $151.4 million. The transaction benefits from credit enhancement levels that are sufficient to withstand KBRA’s rating stresses. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class C notes), a cash reserve account, and excess spread.
This transaction represents Freedom Debt Relief, LLC d/b/a Achieve Debt Relief’s (“Achieve” or “Company”) second securitization collateralized by DS fees. The inaugural transaction, ACHD Trust 2025-DS1, was issued in December 2025.
Achieve is a wholly owned subsidiary of Freedom Financial Network Funding, LLC (“FFNF”). FFNF is a San Mateo, CA, based company with operations in Tempe, AZ. It was founded in 2002 and offers consumer financial solutions including installment loans originated by a partner bank, debt restructuring, home equity lines of credit, and financial education, through subsidiary companies — Freedom Financial Asset Management, LLC, Achieve and Lendage, LLC d/b/a Achieve Home Loans. Two private equity firms, Cercano Capital and Stone Point Capital, have invested in the common equity of Pantheon Freedom, Inc., the ultimate parent holding company of Achieve.
