KBRA Assigns Ratings to Barings Equipment Finance LLC 2025-A
29 Jan 2025 | New York
KBRA assigns ratings to five classes of notes issued by Barings Equipment Finance 2025-A (Barings 2025-A), an equipment ABS transaction.
Barings 2025-A represents the 21st equipment ABS sponsored by MassMutual Asset Finance LLC (MMAF or the Company). MMAF is a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual) and has an operating history dating back to 2003. The Barings 2025-A transaction is secured by a portfolio of equipment lease and loan contracts, together with interests in the related equipment and other collateral (together, the Financed Units). The Financed Units include various types of equipment including transportation equipment, federal energy equipment, energy management, computers, medical equipment, machinery & equipment, software, rail equipment, construction equipment, material handling equipment, furniture & fixtures and telecommunications. Barings 2025-A will issue five classes of notes (Notes). The Notes benefit from credit enhancement in the form of overcollateralization, excess spread, reserve account and subordination for senior classes.
The aggregate securitization value (ASV), which represents the discounted value of the cashflows, other than interest or implicit yield on floating rate contracts, from the Financed Units, is $885.82 million, as of November 30, 2024 (Cut-off Date) and based on the statistical discount rate of 7.50%. The ASV includes 312 Financed Units to 72 obligors. The average Financed Unit balance is approximately $2.84 million and the average obligor exposure is approximately $12.30 million. The maximum obligor exposure, which is to the U.S. Government, is $127.52 million or 14.40% of the ASV. KBRA has ratings on the U.S. Government which are available on KBRA.com. The next largest obligor exposure is $45.53 million, or 5.14% of the ASV.
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