Press Release|ABS
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KBRA Upgrades and Affirms Ratings for BHG Securitization Trusts

4 Sep 2025   |   New York

Contacts

KBRA upgrades its ratings on 16 classes of notes and affirms ratings on 12 classes of notes issued from nine BHG Securitization Trust 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 August 2025 distribution date (July 2025 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its General Global Rating Methodology for Asset Backed Securities and Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating 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 Bankers Healthcare Group Comprehensive Surveillance Dashboard. BHG 2025-1CON and BHG 2025-2CON were not included in this review as they are less than six months seasoned.

The loans supporting the transactions were originated by Bankers Healthcare Group, LLC (“BHG” or the “Company”). BHG was founded in 2001 and provides small business loans (“Commercial Loans”) and unsecured consumer loans (“Consumer Loans”) primarily to prime, high-income professionals. BHG began offering Commercial Loans in 2001 and introduced a consumer lending product in 2014. The Company initially provided business loans to licensed medical professionals only, expanded to offer personal loans to its customer base and has more recently expanded its offerings to include additional high income and high credit quality professionals such as attorneys, financial advisors, and accountants. With corporate headquarters in Davie, Florida, and financial headquarters in Syracuse, New York, BHG has provided more than $24 billion in funding to over 220,000 borrowers since inception. Pinnacle Bank, a Tennessee state-chartered bank and subsidiary of Pinnacle Financial Partners, Inc. (“PNFP”), owns 49% of the Company. On July 25, 2025, PNFP announced a merger with Synovus Financial, which is anticipated to be completed in Q1 2026.

BHG has been profitable since inception, reporting net income of approximately $135 million for the FY ended 2024 and $44 million for the three months ending March 31, 2025. Cash and cash equivalents and stockholder’s equity were approximately $763 million and $525 million, respectively, as of March 31, 2025.

As of June 30, 2025, the Company has drawn $750 million of its $2 billion in funding capacity from five separate warehouse facilities, one revolving corporate facility, and two term loans. The Company also has $226 million in outstanding joint venture agreements with various regional banks who fund 100% of principal of new originations and share the interest and credit risk with BHG. It also has one outstanding loan sale agreement that has an outstanding agreement of $143 million. The Company has issued 11 144a term ABS securitizations totaling $3.6 billion.

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.

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 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 (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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