Digital Media Net - Your Gateway To Digital media Creation. News and information on Digital Video, VR, Animation, Visual Effects, Mac Based media. Post Production, CAD, Sound and Music
Categories: News

KBRA Assigns Preliminary Ratings to FREED ABS Trust 2019-2

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by FREED ABS Trust 2019-2 (“FREED 2019-2”). This is a $524.12 million consumer loan ABS transaction that is expected to close on October 17, 2019.

This transaction represents the fourth overall and the first KBRA rated ABS securitization collateralized by unsecured consumer loans originated through Freedom Financial Asset Management (“FFAM”). The proceeds from the sale of the notes will be used to purchase the loans and related rights from FREED ABS Master Depositor Trust (the “Depositor”), who purchased the loans from the Loan Sellers, to fund the reserve account and to pay transaction expenses. The Depositor will in turn sell the loans to the Issuer.

Freedom Financial Network (“FFN”), the parent company to FFAM, is a San Mateo, CA based company with operations in Tempe, AZ. FFN was founded in 2002 and offers consumer debt settlement services such as: consumer education, installment loans, and debt restructuring, through its three subsidiary companies (“Freedom Debt Relief, LLC (“FDR”), FFAM, and and a fund (“Freedom Consumer Credit Fund” or “FCCF”). FFAM offers FreedomPlus (“F+”) loans and ConsolidationPlus (“C+”) loans, both of which are fixed rate, fully amortizing unsecured consumer loans. The primary purpose of the F+ loans is debt consolidation, while the primary purpose of C+ loans is debt settlement. All of the loans in FREED 2019-2 were originated by Cross River Bank a New Jersey state-chartered commercial bank insured by the Federal Deposit Insurance Corporation (“FDIC”).

The transaction is a sequential pay structure that has initial credit enhancement levels of 42.50% for the Class A Notes, 27.25% for the Class B Notes, and 13.00% for the Class C Notes. Credit enhancement consists of excess spread, overcollateralization, subordination (in the case of the Class A and Class B Notes) and a reserve account funded at closing and subsequent periods.

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 FFAM’s historical gross loss data. KBRA also conducted an operational assessment of FFAM, 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.

To access ratings, reports and disclosures, click here.

Preliminary Ratings Assigned: FREED ABS Trust 2019-2


Preliminary Rating

Principal Balance


A+ (sf)



BBB (sf)



BB (sf)


Related Publications: (available at


Download the iOS App

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.



Alla Mikhalevsky, CFA, Director

(646) 731-3356

Brendan Carter, Associate Director

(646) 731-3315

Eric Neglia, Managing Director

(646) 731-2456

Michael Pettigrew, Analyst

(646) 731-1208


Recent Posts

Web3 Has Come: The TON Foundation Launches TON Sites and TON Proxy

London, United Kingdom--(Newsfile Corp. - September 30, 2022) - Today, The TON Foundation launched the…

3 hours ago

Hugomento Unveils “Wing Shya: Mise en Scène | 夏永康: 情與景,” Iconic Hong Kong-Based Photographer’s First Solo Western US Exhibition

Gallery showcases Wing Shya’s two decades-plus of work transmuting between film, art, and fashion, as…

3 hours ago

AHF To Host National Conference On Affordable Housing, Rent Control, and Homelessness

National Conference On Affordable Housing, Saturday, October 1st, 2022 – 11:00 a.m. – 5:00 p.m.…

3 hours ago

NeoSpectra by Si-Ware Launches the NeoSpectra LabStore, an Online Marketplace Offering the Largest Collection of NIR Calibration Models

Users of NeoSpectra devices can evaluate, select, and configure validated calibration models built by trusted…

6 hours ago

The Theme From New Line Cinema’s “Black Adam” by Grammy Award-Winning Composer Lorne Balfe Now Available on WaterTower Music

LOS ANGELES--(BUSINESS WIRE)--WaterTower Music is pleased to announce today’s release of the first music to…

6 hours ago