Kroll Bond Rating Agency Assigns Preliminary Ratings to Axis Equipment Finance Receivables IV LLC

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

This transaction is Axis Capital’s (“Axis” or the “Company”) fourth 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 (8.00%) as a percentage of the current collateral balance is reached.

As of September 30, 2016 (the “Initial Cutoff Date”), the collateral consists of equipment loans and leases totaling approximately $180.5 million. The balance of the collateral is subject to certain eligibility criteria and will be funded during a 90-day period (“Prefunding Period”) following the closing date and may not exceed $30.0 million. The discounted balance (“Discounted Contract Balance”) for the collateral as of the Initial Cutoff Date is based on the projected equipment loan and lease cash flows discounted at a rate of 4.60%.

KBRA analyzed the transaction using the Equipment Lease & Loan Methodology published on June 30, 2012.

For complete details on the analysis, please see KBRA’s Presale Report, which was published on October 13, 2016 at www.kbra.com.

 

Preliminary Ratings Assigned: Axis Equipment Finance Receivables IV LLC

Class     Rating     Initial Principal Balance
A     AAA(sf)     $ 166,411,000
B     AA(sf)     $ 8,737,000
C     A(sf)     $ 6,977,000
D     BBB(sf)     $ 8,822,000
E     BB(sf)     $ 5,662,000
F     B(sf)     $ 4,623,000
       

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:
Kroll Bond Rating Agency
Patrick McShane, 646-731-2376
pmcshane@kbra.com
or
Lenny Giltman, 646-731-2378
lgiltman@kbra.com
or
Shi Shen, 646-731-2480
sshen@kbra.com

Contacts

Analytical:
Kroll Bond Rating Agency
Patrick McShane, 646-731-2376
pmcshane@kbra.com
or
Lenny Giltman, 646-731-2378
lgiltman@kbra.com
or
Shi Shen, 646-731-2480
sshen@kbra.com