KBRA Assigns Preliminary Ratings to Primrose Funding, LLC Series 2025-1 Senior Secured Notes

KBRA assigns preliminary ratings to Primrose Funding, LLC (the Issuer) and Primrose Funding Sub Issuer, LLC (the Subnote Issuer and, together with the Issuer, the Issuers), Series 2025-1 Class A-1 and Class A-2 Notes (Primrose 2025-1), a whole business securitization (WBS). Primrose 2025-1 represents the sixth securitization issued by Primrose Funding, LLC and/or the Subnote Issuer, following the establishment of the master trust in 2019. In conjunction with the issuance of the Series 2025-1, KBRA anticipates affirming and withdrawing the ratings on the Issuer’s outstanding notes.

Primrose School Franchising Company LLC (Primrose or the Company) is a leading provider of premium early childhood education and childcare in the United States. The Primrose franchise network provides a variety of curricula including arts, mathematics, language and literacy and social-emotional development, to customers through its system of 532 schools across 34 states and Washington DC, as of March 31, 2025. The Primrose System had enrollment capacity of approximately 99,000 and generated over $1.4 billion of system-wide sales at its schools during the twelve months ended (LTM) March 31, 2025. The system is 100% franchised with over 333 franchisees, each owning, on average, approximately 1.6 schools as of March 31, 2025.

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Related Publications

• Primrose Funding, LLC Series 2024-3 Rating Report
• Primrose Funding, LLC, Series 2022-1 New Issue Report

Methodologies

• ABS: Whole Business Securitization (WBS) 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), 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: 1009426

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