Kroll Bond Rating Agency Assigns Preliminary Ratings to Navitas Equipment Receivables LLC 2016-1

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four note classes of Navitas Equipment Receivables LLC 2016-1. The notes are newly issued asset-backed securities backed by a portfolio of equipment leases and loans.

This transaction is Navitas Credit Corp.’s (“Navitas” or the “Company”) third securitization supported by small and mid-ticket general equipment. The transaction features a payment waterfall, whereby all collections after expenses and interest payments will pay down principal, until the target credit enhancement (8.25%) as a percentage of the current collateral balance is reached.

As of July 31, 2016 (the “Statistical Cutoff Date”), the collateral consists of equipment loans and leases totaling approximately $156.9 million. The balance of the collateral is subject to certain eligibility criteria and will be funded during a 90-day period following the closing date. The current portfolio is comprised of 4,978 equipment contracts with a weighted average monthly payment of $31,510 and weighted average remaining term of 40.5 months. Eligibility criteria exist for equipment contracts funded after the closing date to mitigate against material deterioration in the collateral credit quality of the portfolio.

KBRA analyzed the transaction using the Equipment Lease & Loan Methodology published on June 30, 2012. KBRA also conducted an on-site operational review of Navitas at its Jacksonville, FL headquarters in August 2016.

For complete details on the analysis, please see KBRA’s Presale Report, Navitas Equipment Receivables LLC 2016-1, which was published on September 9, 2016 at www.kbra.com.

Preliminary Ratings Assigned: Navitas Equipment Receivables LLC 2016-1

             
Class     Rating     Initial Principal Balance
A-1     K-1+     $60,100,000
A-2     AAA     $108,138,000
B     BBB+     $25,214,000
C     BBB-     $6,251,000
D     BB-     $3,178,000
       

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical Contacts:
Patrick McShane, 646-731-2376
pmcshane@kbra.com
or
Anthony Nocera, 646-731-2350
anocera@kbra.com
or
Lenny Giltman, 646-731-2378
lgiltman@kbra.com
or
Shi Shen, 646-731-2480
sshen@kbra.com

Contacts

Analytical Contacts:
Patrick McShane, 646-731-2376
pmcshane@kbra.com
or
Anthony Nocera, 646-731-2350
anocera@kbra.com
or
Lenny Giltman, 646-731-2378
lgiltman@kbra.com
or
Shi Shen, 646-731-2480
sshen@kbra.com