KBRA Assigns Preliminary Ratings to Notes Issued by Genesis Sales Finance Master Trust, Series 2021-A

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six classes of notes issued by Genesis Sales Finance Master Trust, Series 2021-A (“GSFMT Series 2021-A”), a credit card asset-backed securitization.

The preliminary ratings reflect initial credit enhancement levels of 57.10% for the Class A notes to 5.00% for the Class F notes. As of the March 31, 2021 cutoff date, Genesis’s private-label credit card program customers had an average balance of approximately $1,227, weighted average FICO of 639, weighted average APR of 29.2%, average credit line of $2,789 and a weighted average utilization rate of 44.0%.

Genesis Financial Solutions, Inc., including its affiliates, (“Genesis” or the “Company”) is a privately held consumer finance company that was established in 2001 and provides service to support both general purpose and private label retail credit card programs. These services include marketing and advertising, developing and applying credit scoring criteria, making credit decisions using the originating partners’ credit policy, providing customer service, sending billing statements and collecting on delinquent accounts. The Company commenced their point-of-sale private label retail credit card program in 2011 and entered the general-purpose credit card business 2013.

KBRA applied its Credit Card ABS Global Rating Methodology and Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA also conducted an operational assessment of Genesis, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

• Credit Card ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology

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) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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