NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four note classes of Securitized Equipment Receivables Trust 2018-1. 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”) 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 sequentially to the notes.
As of January 1, 2018 (the “Statistical Calculation Date”), the collateral consists of equipment loans and leases totaling approximately $129.0 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 4.40%.
| Preliminary Ratings Assigned: Securitized Equipment Receivables Trust 2018-1 | ||
| Class | Preliminary KBRA Rating | Initial Amount |
| A Notes | AA (sf) | $16,600,000 |
| B Notes | A (sf) | $3,100,000 |
| C Notes | BBB (sf) | $3,200,000 |
| D Notes | BB (sf) | $1,500,000 |
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: Securitized Equipment Receivables Trust 2018-1, Pre-Sale Report
- ABS: Global Equipment Lease & Loan ABS Rating Methodology
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
