Moody's Investors Service has assigned definitive ratings to the notes issued by HPEFS Equipment Trust 2019-1 (HPEFS 2019-1). This is the first issuance for Hewlett-Packard Financial Services Company (HPEFS), a wholly owned subsidiary of Hewlett Packard Enterprise Company. The notes are backed by a pool of small-ticket equipment loans and leases primarily originated by HPEFS, which is also the servicer and administrator for the transaction.

Approximately $763 million of securities were rated.

The complete rating actions are as follows:

Issuer: HPEFS Equipment Trust 2019-1

Class A-1 Notes, Definitive Rating Assigned P-1 (sf)

Class A-2 Notes, Definitive Rating Assigned Aaa (sf)

Class A-3 Notes, Definitive Rating Assigned Aaa (sf)

Class B Notes, Definitive Rating Assigned Aa1 (sf)

Class C Notes, Definitive Rating Assigned A1 (sf)

Class D Notes, Definitive Rating Assigned Baa1 (sf)

Ratings Rationale
The definitive ratings are based on the credit quality of the underlying equipment contracts and their expected performance, the historical performance of HPEFS's managed portfolio of similar collateral, the track record, experience and expertise of HPEFS as originator and servicer, the strength of the transaction structure, and the legal aspects of the transaction. Additionally, Moody’s based its P-1 (sf) rating of the Class A-1 notes on the cash flows that it expects the underlying receivables to generate during the collection periods prior to the Class A-1 notes' legal final maturity date in October 2020.

For more information, see the release here.