NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to eight classes of notes issued by Granite Park Equipment Leasing 2023-1 LLC (Granite Park 2023-1), an equipment ABS transaction. Granite Park 2023-1 represents Granite Park Holdings I LLC’s (Granite Park) first equipment ABS but the eleventh equipment ABS backed by collateral originated and serviced by Stonebriar Commercial Finance LLC (SCF or the Company). While Granite Park is not a subsidiary or affiliate of SCF, the company was formed in November 2022 to make investments in and securitize such investments with respect to equipment contracts originated by SCF or its affiliates. SCF is the servicer for the collateral backing Granite Park 2023-1. Founded in 2015, SCF is a privately owned commercial equipment finance company located in Plano, TX. The Company originates secured loans and leases in a variety of industries that are collateralized by essential use assets. As of June 30, 2023, SCF had funded approximately $9.5 billion of investments with a current owned portfolio of $4.6 billion in net investment.
Granite Park 2023-1 will issue nine classes of notes, including a short term money market tranche. Credit enhancement includes a reserve account, overcollateralization, subordination for senior classes and excess spread. The aggregate discounted contract balance (the ADB) of the portfolio is approximately $406.09 million as of July 31, 2023. The ADB is based on the projected equipment loan and lease cash flows, as well as the residual value of the related equipment, discounted at the respective contract’s implicit rate of return. The weighted average IRR is 10.58%. The portfolio is comprised of 34 contracts to 24 obligors. The average contract balance is approximately $11.94 million and the average exposure to an obligor is approximately $16.92 million. The maximum exposure to an obligor is approximately $50.87 million or approximately 12.53% of the ADB.
- Equipment Lease & Loan Global ABS Methodology
- Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
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