KBRA assigns preliminary ratings to HS Issuer, LLC, Series 2026-1/2/3 (HS 2026-1/2/3 or the Series 2026-1/2/3 Notes), a service contract securitization that is primarily collateralized by home infrastructure plan agreements. HS 2026-1/2/3 represents HS Issuer, LLC’s (the Master Issuer) inaugural securitization. The transaction structure is a master trust, and as such, the indenture permits the issuance of additional classes and series of notes subject to certain conditions, including rating agency confirmation. The proceeds from the Series 2026-1/2/3 Notes are being used to repay the Company’s existing debt, fund transaction accounts and for general corporate purposes, which may include growth capital expenditures and a dividend.

The business of HomeServe North America (HomeServe, HS or the Company) is to market, sell and/or administer home repair plans or service contracts, water loss related insurance products and on-demand home repair and installation services and related activities (collectively, the Programs), primarily for residential customers. The collateral for the transaction is substantially all the aforementioned existing and future home repair plans, maintenance agreements or service contracts (the Customer Agreements), all existing and future agreements between the Company and its utility and municipality partners (collectively, Affinity Partners, and the agreements, collectively, Partner Agreements), all existing and future equity interest in the Master Issuer and the Asset Entities, as well as certain other agreements and assets supporting the HomeServe business.

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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.

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