KBRA Assigns Preliminary Ratings to MMAF Equipment Finance LLC 2023-A

KBRA assigns preliminary ratings to four classes of notes issued by MMAF Equipment Finance LLC 2023-A (MMAF 2023-A), an equipment ABS transaction.

MMAF 2023-A represents the 19^th equipment ABS sponsored by MassMutual Asset Finance LLC (MMAF or the Company). MMAF is a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company and has an operating history dating back to 2003. The MMAF 2023-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, machinery and equipment, marine equipment, computers, vending equipment, railcars, software, intermodal containers, real estate, corporate aircraft, material handling equipment, construction equipment, furniture and fixtures, medical equipment, energy management and service vehicles. MMAF 2023-A will issue four classes of notes (Notes). The Notes benefit from credit enhancement in the form of overcollateralization, excess spread, and a reserve account.

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 $889.00 million, as of May 31, 2023 (Cut-off Date) and based on the statistical discount rate of 7.75%. The ASV includes 422 Financed Units to 76 obligors. The average Financed Unit balance is approximately $2.11 million and the average obligor exposure is approximately $11.70 million. The maximum obligor exposure, which is to the U.S. Government, is $223.20 million or 25.11% of the ASV. KBRA has ratings on the U.S. Government which are available on KBRA.com. The next largest obligor exposure is $77.24 million, or 8.69% of the ASV.

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Related Publications

• Equipment Lease and Loan Global ABS Methodology
• ABS General Global Rating Methodology for Asset-backed Securities
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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