Fitch Upgrades Affirm Asset Securitization Trust 2024-X2 Ratings

Fitch Ratings has upgraded two classes of notes tied to the Affirm Asset Securitization Trust 2024-X2, citing stronger credit enhancement and stable collateral quality, according to ratings data published on November 14, 2025.

The rating agency upgraded the class B notes of AFFRM 2024-X2 to ‘AA+sf’ from ‘AAsf’ and raised the class C notes to ‘A+sf’ from ‘Asf’, according to the report. At the same time, Fitch assigned Positive Rating Outlooks to both the class B and class C notes. The class A notes maintained their ‘AAAsf’ rating with a Stable outlook, while the trust’s overall performance remained in line with initial expectations since closing.

Collateral Quality and Credit Enhancement Trends

The securitization pool consists entirely of Affirm’s Core product, with portfolio metrics showing steady characteristics. According to Fitch, the weighted average FICO score for the pool rose to 684, compared with 680 at the time of closing. Loans categorized under Affirm Loan Grade A—which have historically produced the lowest default rates—increased to 48.3% of the pool from 42.8% at launch. Meanwhile, Affirm Grade E loans, associated with the highest historical defaults, accounted for 1.03% of the 2024-X2 pool, shifting marginally from 1.1% at closing.

The weighted average contract rate for the pool landed at 26.76%, holding relatively steady against the 26.94% recorded at closing and marking one of the highest rate profiles for the platform to date. Fitch analyzed ongoing performance trends and established a base case default assumption of 9.00% for the remaining pool. After accounting for defaults recognized since closing, the lifetime cumulative base case default assumption dropped to 3.79%, down from 6.50% at the initial transaction date.

Hard Credit Enhancement and Stressed Cash Flows

Hard credit enhancement for the trust expanded across multiple tranches as the pool paid down. According to Fitch data, current hard credit enhancement totals 66.62% for class A, 47.26% for class B, 30.48% for class C, and 6.93% for class D notes. These levels compare with 28.58%, 21.43%, 15.23%, and 6.53% respectively at closing.

The class A note has paid down to a 17.5% note factor, and class B notes will begin receiving principal distributions only after the class A notes are paid in full. Fitch applied a ‘AAAsf’ rating stress of 4.75x to the base-case default rate for consumer loans, revising the figure downward from 5.0x at closing to account for expanded data history and stable performance across Affirm’s X platform.

Partner Bank Origination and Legal Structure

The underlying consumer loans within Affirm’s securitization are originated by three key partner banks: Cross River Bank, a New Jersey state-chartered commercial bank; Celtic Bank, a Utah state-chartered industrial bank; and Lead Bank, a Missouri state-chartered bank, according to the report.

Fitch noted that the true lender status of these partner banks in the context of Affirm’s loan acquisition carries legal and regulatory uncertainty. If a court or regulatory body determines that Affirm, rather than the originating partner banks, is the true lender, the loans could face enforceability challenges, be declared void, or become subject to interest rate reductions under state usury laws.