NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six note classes of Ascentium Equipment Receivables 2017-1 Trust. The notes are newly issued asset-backed securities backed by a portfolio of equipment leases and loans.
This transaction is Ascentium Capital LLC’s (“Ascentium” or the “Company”) eighth 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 overcollateralization (10.25%) as a percentage of the current collateral balance is reached.
As of September 30, 2017 (the “Statistical Calculation Date”), the collateral consists of equipment loans and leases totaling approximately $218.8 million. The balance of the collateral is subject to certain eligibility criteria and will be funded during a 60-day period (“Pre-Funding Period”) following the closing date and will total approximately $31.9 million. The discounted balance (“Discounted Contract Balance”) for the collateral as of the Statistical Calculation Date is based on the projected equipment loan and lease cash flows discounted at a rate of 4.75%.
|Preliminary Ratings Assigned: Ascentium Equipment Receivables 2017-2 Trust|
|Class||Preliminary KBRA Rating||Initial Amount|
|A-1 Notes||K1+ (sf)||$50,000,000|
|A-2 Notes||AAA (sf)||$80,000,000|
|A-3 Notes||AAA (sf)||$69,279,000|
|B Notes||AA+ (sf)||$14,915,000|
|C Notes||A+ (sf)||$11,155,000|
|D Notes||BBB+ (sf)||$9,651,000|
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 available here.
Related Publications: (available at www.kbra.com)
- ABS: Ascentium Equipment Receivables 2017-2 Trust, Pre-Sale Report
- ABS: Equipment Lease & Loan ABS Rating Methodology
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).