Kroll Bond Rating Agency Assigns Preliminary Ratings to Chesapeake Funding II LLC, Series 2017-2 Notes

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes (the “Notes”) anticipated to be issued by Chesapeake Funding II LLC (see preliminary ratings listed below).

This transaction represents the sixth issuance for Element Fleet Management Corporation (“Element” or the “Company”) from the Chesapeake Funding II LLC master trust. The Series 2017-2 Notes issued by Chesapeake II will be primarily supported by i) leases and related vehicles originated by Gelco Corporation (“Gelco”) and allocated to one or more special units of beneficial interest (“SUBIs”) and ii) fleet loans and vehicles originated by Gelco Corporation (“Gelco”). Payments to Chesapeake II will come from i) collections from the leases and the sales proceeds from the disposition of the leased vehicles, and ii) collections from the fleet loans and the fleet loan property. The leases and vehicles supporting the Series 2017-2 notes are a shared pool of leases allocated to SUBI-2 and DLPT Lease SUBI and supporting other series of notes issued from Chesapeake II. As of March 31, 2017, the collateral has an initial receivables balance of $5.5 billion.

Credit enhancement for the Notes consists of overcollateralization, subordination and a reserve account funded on the closing date.

KBRA analyzed the transaction using the General Rating Methodology for Asset-Backed Securities published on July 30, 2012.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, which was published today at www.kbra.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Class     Rating     Initial Principal Balance
Class A-1 Notes     AAA (sf)     $300,770,000
Class A-2 Notes     AAA (sf)     $300,770,000
Class B Notes     AA (sf)     $18,380,000
Class C Notes     A (sf)     $15,040,000
Class D Notes     BBB (sf)     $15,040,000
       

Representations & Warranties Disclosure:

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled Chesapeake Funding II LLC, Series 2017-2 Notes Representations and Warranties Disclosure.

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

Kroll Bond Rating Agency
Analytical:
John Lampasona, 646-731-2318
jlampasona@kbra.com
or
Patrick McShane, 646-731-2376
pmcshane@kbra.com
or
Caitlin Colvin, 646-731-2465
ccolvin@kbra.com

Contacts

Kroll Bond Rating Agency
Analytical:
John Lampasona, 646-731-2318
jlampasona@kbra.com
or
Patrick McShane, 646-731-2376
pmcshane@kbra.com
or
Caitlin Colvin, 646-731-2465
ccolvin@kbra.com