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KBRA Affirms and Upgrades Ratings for Service Experts Issuers

17 Apr 2026   |   New York

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KBRA affirms its ratings on four classes of notes and upgrades its ratings on three classes of notes issued from three Service Experts Issuer ("Service Experts") transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the March 2026 distribution date (February 2026 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its General Global Rating Methodology for Asset Backed Securities, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying Service Experts Issuer Comprehensive Surveillance Dashboard.

Advantage Experts Services LLC, d/b/a Service Experts, (“Advantage Experts” or the “Company”) and has issued 3 transactions collateralized by residential retail lease contracts and agreements financing heating, ventilation and air conditioning (HVAC) units, water treatment or similar equipment, water heating equipment and related maintenance contracts. Advantage Experts has been in the consumer and commercial equipment business since 1996. In 2017, Advantage Experts and its affiliates started their HVAC and water heater leasing program in the U.S. As of March 31, 2026, Advantage Experts has more than 3,000 employees and approximately 75 locations across more than 30 states. The Company is owned by Brookfield Infrastructure Partners L.P., and its institutional partners, which is one of the largest owners and operators of global infrastructure networks with $247 billion of assets under management.

Service Experts recorded a net income for 2020 through 2022 but had a net loss in 2023 through 2025, due to investments in the lease program to grow the business, per the Company. Total revenue increased from 2020 through 2024 but declined in 2025. Service Experts has $400 million across two committed warehouse facilities with Citigroup and Credit Agricole. A corporate revolving credit facility is also available to Service Experts to address working capital needs across various subsidiaries. As of March 31, 2026, the aggregate undrawn capacity across the two warehouse facilities is approximately $268 million.

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For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

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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