KBRA Assigns Preliminary Ratings to Foundation Finance Trust 2026-2
NEW YORK, October 23, 2026--KBRA assigns preliminary ratings to five classes of notes issued by Foundation Finance Trust 2026-2 ("FFIN 2026-2"), an asset-backed securitization collateralized by unsecured consumer loans primarily used for home improvements.
FFIN 2026-2 will issue five classes of notes totaling $353.79 million, collateralized by $380.0 million receivables. FFIN 2026-2 has initial credit enhancement levels ranging from 46.90% for the Class A notes to 7.40% 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. In September 2022, Foundation was acquired by InterVest Capital Partners, a New York-based investment management firm.
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.
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Methodologies
ABS: Consumer Loan ABS Global Rating Methodology
Structured Finance: 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.