KBRA Assigns Preliminary Ratings to PEAR 2021-1

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes issued by PEAR 2021-1, LLC, a litigation finance ABS transaction.

The PEAR 2021-1, LLC transaction represents Golden Pear Funding OpCo, LLC’s (“Golden Pear”) second ABS collateralized by litigation finance receivables. Golden Pear is a litigation finance company that conducts business throughout the U.S. but is concentrated primarily in the New York area. As of June 30, 2021, the company, including originations of predecessor company Golden Pear Funding, LLC, has funded over $710 million in aggregate advances dating back to 2008.

The portfolio securing the transaction has an aggregate discounted receivable balance (“ADPB”) of approximately $145 million as of the October 13, 2021 cutoff date. The ADPB is the aggregate discounted cash flows of the collections associated with the PEAR 2021-1, LLC portfolio’s litigation funding receivables (“Receivables”). As of the cutoff date, the Receivables comprise pre-settlement litigation funding receivables. No post-settlement advances or medical lien receivables are included in the pool. The Receivables have an average advance to expected settlement case value of approximately 14%.

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Related Publications

• General Global Rating Methodology for Asset-Backed Securities
• Global Structured Finance Counterparty Methodology
• ESG Global Rating 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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