KBRA Assigns Preliminary Ratings to Foundation Finance Trust 2026-1
KBRA assigns preliminary ratings to five classes of notes issued by Foundation Finance Trust 2026-1 (“FFIN 2026-1”), an asset-backed securitization collateralized by unsecured consumer loans primarily used for home improvements.
FFIN 2026-1 will issue five classes of notes totaling $399.39 million, collateralized by $417.77 million receivables. FFIN 2026-1 has initial credit enhancement levels ranging from 41.32% for the Class A notes to 4.21% for the Class E notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class E notes), a cash reserve account and excess spread.
Foundation was founded in 2012 through the partnership of an experienced management team and Garrison Investment Group (“Garrison”). In September 2022, Foundation was acquired by InterVest Capital Partners (“InterVest”) a New York-based investment management firm, which manages or advises funds and accounts that specialize in specialty finance and real estate investment since 1999. InterVest owns 76.50% of the business and the balance is owned by the Foundation management team.
KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology as part of its analysis of the portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of Foundation, as well as regular due diligence calls with Foundation. Operative agreements and legal opinions will be reviewed prior to closing.
