KBRA Assigns Preliminary Ratings to PSP Funding, LLC – Series 2019-1 Senior Secured Notes

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to two note classes of PSP Funding, LLC, a whole business securitization.

This transaction represents the first whole business securitization (“WBS”) issued by PSP Funding, LLC (the “Issuer”). The proceeds from the offered notes will be used to refinance the existing debt, pay certain transaction-related expenses and for general corporate purposes, which may include a return of capital to the Company’s equity holders. In connection with its first securitization transaction, Pet Supplies “Plus”, LLC and its subsidiaries (collectively “PSP”, “Pet Supplies Plus” or the “Company”) are contributing substantially all of their revenue-generating assets to the securitization entities as collateral for the offered notes. The collateral includes existing and future domestic franchise agreements, existing and future company-operated store royalties and profits, distribution agreements and profits, and intellectual property. The Company is the franchisor and operator of stores under the Pet Supplies Plus brand.

KBRA analyzed the transaction using the Global General Rating Methodology for Asset-Backed Securities published on November 28, 2017 and the Global Structured Finance Counterparty Methodology published on August 8, 2018. KBRA also conducted an on-site operational review of PSP at its Livonia, MI headquarters in June 2019. KBRA will review the final operative agreements and legal opinions for the transaction prior to closing.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: PSP Funding, LLC, Series 2019-1 Senior Secured Notes

Series 2019-1

Preliminary Rating

Initial Principal Balance

Class A-1

BBB (sf)


Class A-2

BBB (sf)


To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)





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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.



Xilun Chen, CFA, Senior Director

(646) 731-2431


Abby Barkwell, Associate Director

(646) 731-3304


Shi Shen, CFA, Associate

(646) 731-2480


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