NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three note classes of STEAM 2018-1, a railcar leasing securitization.
This is the first transaction issued out of USQ Rail I LLC (“U.S. Issuer”) and USQ Canada Rail ULC (“Canadian Issuer”, and together with the U.S. Issuer, the “Issuers”). All of the railcars in the portfolio (the “Portfolio Railcars”) and the related leases were previously acquired by the Issuers from the ECN Sellers and Trinity Sellers. The portfolio consists of 1,716 non-tank railcars with an aggregate fair market value (“FMV”) of $122.37 million, and 1,491 tank railcars with an aggregate FMV of $190.68 million. Approximately 95.9% of the portfolio is on lease, with the majority of leases (over 80%) on full service leases. The Issuers will be responsible for covering maintenance costs for the railcars in the portfolio that are under full service lease contracts.
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.
Preliminary Ratings Assigned: STEAM 2018-1
|Series 2018-1||Preliminary Rating||Initial Principal Balance|
|Class A-1||A (sf)||$88,700,000|
|Class A-2||A (sf)||
|Class B Sub||BBB- (sf)||$15,000,000|
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)
CONNECT WITH KBRA
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.