NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to seven note classes of Ascentium Equipment Receivables 2018-1 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”) ninth 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 (7.6%) as a percentage of the current collateral balance is reached.
As of March 31, 2018 (the “Statistical Calculation Date”), the collateral consists of equipment loans and leases totaling approximately $333.1 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 2018-1 Trust|
|Class||Preliminary KBRA Rating||Initial Amount|
|A-1 Notes||K1+ (sf)||$90,000,000|
|A-2 Notes||AAA (sf)||$100,000,000|
|A-3 Notes||AAA (sf)||$71,845,000|
|B Notes||AA (sf)||$22,153,000|
|C Notes||A (sf)||$14,158,000|
|D Notes||BBB (sf)||$13,492,000|
|E Notes||BB (sf)||$6,830,000|
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)
- Ascentium Equipment Receivables 2018-1 Trust, Pre-Sale Report
- Global Equipment Lease & Loan ABS Rating Methodology
About KBRA and KBRA Europe
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.