Securities and Exchange Commission as an NRSRO. KBRA is a full-service credit rating agency registered with the U.S. Aqua Finance Trust 2019-A Pre-Sale Report.Global Structured Finance Counterparty Methodology.Global Consumer Loan ABS Rating Methodology.To access ratings, reports and disclosures, click here. Preliminary Ratings Assigned: Aqua Finance Trust 2019-A KBRA will also review the operative agreements and legal opinions for the transaction prior to closing. KBRA also conducted an operational assessment of Aqua, as well as a review of the transaction’s legal structure and transaction documents. KBRA applied its Global Consumer Loan ABS Rating Methodology and Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Aqua’s historical gross loss data. Credit enhancement consists of overcollateralization, subordination of the junior note classes, a cash reserve account funded at closing, and excess spread. The transaction has initial credit enhancement levels of 34.15% for the Class A Notes, 23.75% for the Class B Notes, 13.65% for the Class C Notes and 3.50% for the Class D Notes. These contracts are used to finance the purchase and installation of water treatment systems, home improvement projects (such as roofing, window/door replacement, heating, ventilation and air conditioning (“HVAC”), kitchen and bathroom renovations, siding), recreational products (pools, spas and saunas) and marine and recreational vehicles (such as boats, recreational vehicles, trailers, all-terrain/utility-terrain vehicles and motorcycles). Aqua’s funding model relies on the sale of loans at par to a group of third-party financial institutions and use of its warehouse facilities.Īqua acquires both closed-end and open-ended simple interest retail contracts from dealers who originate the consumer receivables by providing point-of-sale financing to the consumer. As of June 30, 2019, the Company has $195.5 million of stockholder’s equity and has demonstrated strong financial performance, generating positive net income over the past several years.

Aqua’s originations have increased 62% YTD through August 2019 when compared to the same period in 2018 by expanding their dealer base and the type of products they finance.Īs of July 31, 2019, the Company owns and services 263,818 receivables with an aggregate outstanding balance of approximately $2.0 billion. On August 10, 2018, an 80% ownership stake in Aqua was acquired by a Blackstone managed fund and since the acquisition, the Company’s management has largely remained unchanged. Chadwell will be stepping down on or about Octobut will continue to hold the position of Chairman of the Board of Directors of Aqua. The Company closed their first securitization in November 2017.Īqua was founded in 1985 by current President and Chief Executive Officer Robert Chadwell, incorporated on Januand is an independent licensed consumer finance company operating in all 50 states. The transaction is collateralized by a pool of retail installment sale contracts and agreements (“Contracts”) primarily used by consumers to purchase water treatment equipment or make home improvements. This transaction represents the second ABS securitization for Aqua Finance, Inc (“Aqua” or the “Company”) and its affiliates. NEW YORK-( BUSINESS WIRE)-Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Aqua Finance Trust 2019-A (“Aqua 2019-A”), a consumer loan asset-backed securities transaction that expected to close on September 18, 2019.

Aqua finance incorporated