KBRA assigns a preliminary rating to one class of notes issued by BHG Securitization Trust 2024-1CON (“BHG 2024-1”), an asset-backed securitization collateralized by a pool of unsecured consumer loans (“Consumer Loans”).

BHG 2024-1 will issue five classes of notes totaling $273.3 million. The preliminary rating reflects the initial credit enhancement level of 54.70% for the Class A notes.

BHG 2024-1 represents the ninth term ABS securitization for the Bankers Healthcare Group, LLC (“BHG” or the “Company”), but the first ABS securitization collateralized exclusively by Consumer Loans. BHG was founded in 2001 and provides Commercial Loans and Consumer Loans primarily to prime, high income professionals. Pinnacle Financial Partners, Inc., a holding company headquartered in Tennessee, and its subsidiary Pinnacle Bank, a Tennessee state-chartered bank, own a combined 49% of the Company. With corporate headquarters in Davie, Florida, and financial headquarters in Syracuse, New York, BHG has provided more than $18 billion in funding to over 160,000 borrowers since inception.

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 transaction’s underlying collateral pool and the proposed capital structure. KBRA considered its operational review of BHG, as well as periodic update calls with the Company. 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
• 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. 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.

Doc ID: 1003406

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