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KBRA Affirms and Upgrades Ratings for Foundation Finance Trusts

30 Oct 2026   |   New York

Contacts

KBRA affirms its ratings on 20 classes of notes and upgrades its ratings on 20 classes of notes issued from nine Foundation Finance Trusts (“FFT”) transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the October 2026 distribution date (September 2026 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying Foundation Finance Trust Comprehensive Surveillance Dashboard. FFT 2026-1 was not included in this review as it is less than six months seasoned.

Foundation was founded in 2012 through the partnership of an experienced management team and Garrison Investment Group. In September 2022, Foundation was acquired by InterVest Capital Partners, a New York-based investment management firm.

Foundation acquires Contracts from dealers who originate Contracts by providing point-of-sale financing to consumers that are typically creditworthy homeowners making a discretionary purchase to make a repair or improve the value of their home. Dealers are contractors or retailers that sell home improvement products and services that include windows, roof replacements, heating, ventilation, air conditioning systems (“HVAC systems”), siding, and water treatment products. Foundation, in the majority of cases, funds the dealer directly after project completion to ensure the proceeds are used for the contracted home improvement. Foundation currently offers financing in all 50 states and Washington DC, either through state licenses or in states where there is no licensing requirement for that specific state. As of June 30, 2026, Foundation had originated approximately $6.1 billion of Contracts since inception and serviced a portfolio of approximately $2.68 billion.

Foundation has been profitable since 2013 and has positive net earnings as of June 30, 2026. Foundation has three revolving warehouse facilities with a total of $850.0 million in funding capacity. As of June 30, 2026, the warehouses’ outstanding balance was $488.3 million.

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

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.

Information on certain affiliations between directors of KBRA Ratings and rated entities or related third parties 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), one of the major credit rating agencies (CRA), is a full-service CRA registered with the US 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. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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