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KBRA Assigns Preliminary Ratings to NMEF Funding 2025-B, LLC

1 Aug 2025   |   New York

Contacts

KBRA assigns preliminary ratings to six classes of notes issued by NMEF Funding 2025-B, LLC (NMEF 2025-B), an equipment ABS.

NMEF 2025-B represents North Mill Equipment Finance LLC’s (North Mill or the Company) tenth equipment ABS. North Mill is an independent equipment finance company created in 2012 when Colford Capital Holdings LLC acquired and re-branded Equilease Financial Services (Equilease), which had been founded in 1957. InterVest Capital Partners Inc. (InterVest, formerly Wafra Capital Partners Inc.) subsequently acquired North Mill from Colford Capital Holdings LLC in August 2018. North Mill has historically specialized in transportation-related equipment contracts but in recent years diversified into an increased level of non-transportation originations including medical and franchise contracts. The Company’s portfolio totals $1.5 billion in outstanding equipment contract balance as of June 30, 2025.

NMEF 2025-B is the first North Mill transaction to include contracts originated by Pawnee Leasing Corporation (Pawnee). In April 2025, North Mill acquired Pawnee, pursuant to final approval from the U.S. Bankruptcy Court for the District of Delaware as a result of a court-supervised sale and investment solicitation process initiated in Canada.

NMEF 2025-B is backed by a pool of equipment loans and leases (Equipment Contracts). The statistical discounted pool balance (Statistical Pool) totals $582.37 million and represents the projected cash flows of the Equipment Contracts discounted at a rate of 7.05%. Pawnee originated contracts represent approximately 22% of the Statistical Pool. NMEF 2025-B will issue six classes of notes, including a short-term tranche. Credit enhancement includes a reserve account, overcollateralization (O/C), excess spread and subordination for senior classes. The O/C is subject to a target equal to 18.50% of the current pool balance and a floor equal to 0.50% of the initial pool balance. The reserve account is funded at closing at 1.00% of the initial pool balance and is non-amortizing.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

Disclosures

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.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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