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PROG Holdings Inc

KBRA Assigns Preliminary Ratings to Purchasing Power Funding 2026-A, LLC

NEW YORK--(BUSINESS WIRE)--Feb. 11, 2026-- KBRA assigns preliminary ratings to five classes of notes issued by Purchasing Power Funding 2026-A, LLC (“PPWR 2026-A”), a $225.00 million consumer installment receivable ABS transaction. PPWR 2026-A is a revolving ABS securitization with an initial securitization value of approximately $256.1 million and is collateralized by a pool of retail installment sales contracts (“Receivables”) originated by Purchasing Power, LLC (the “Company” or “Purchasing Power”).

Founded in 2001, Purchasing Power is an Atlanta, GA-based provider of an organization-sponsored payroll purchase program. On January 2, 2026, the Company was acquired for approximately $420 million by PROG Holdings, Inc. (NYSE: PRG) (“PROG”), a fintech company headquartered in Salt Lake City, UT, which specializes in alternative payment solutions for customers of subprime credit quality.

Purchasing Power partners with private sector employers (“Affiliate Clients”) and government employers (“Public Sector Clients”), collectively (“Clients”), to provide voluntary financing to their employees (“Obligors”) for the purpose of purchasing consumer goods and services. Purchasing Power does not offer loans to their Obligors. Instead, the Obligor is offered a Receivable which is repaid through payroll deductions (or payroll allotment for government Obligors) from their paychecks.

PPWR 2026-A has initial credit enhancement levels from 52.98% for the Class A notes to 13.03% for the Class E notes. Credit enhancement consists of subordination (except for the Class E notes), overcollateralization, a non-declining reserve account, and excess discount.

KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of Purchasing Power, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

To access ratings and relevant documents, click here.

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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.

Doc ID: 1013455

Analytical Contacts

Jacob Paulose, Associate Director (Lead Analyst)
+1 646-731-1269
jacob.paulose@kbra.com

Michael Polvere, Director
+1 646-731-3339
michael.polvere@kbra.com

Arjun Mallya, Analyst
+1 646-731-2343
arjun.mallya@kbra.com

Melvin Zhou, Managing Director (Rating Committee Chair)
+1 646-731-2412
melvin.zhou@kbra.com

Business Development Contact

Arielle Smelkinson, Senior Director
+1 646-731-2369
arielle.smelkinson@kbra.com

Source: Kroll Bond Rating Agency, LLC