KBRA assigned preliminary ratings to four classes of notes issued by MMAF Equipment Finance LLC 2022-B (MMAF 2022-B), an equipment ABS transaction.
MMAF 2022-B represents the 18th equipment ABS sponsored by MassMutual Asset Finance LLC (MMAF). MMAF is a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company and has an operating history dating back to 2003. The MMAF 2022-B 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, intermodal containers, machinery and equipment, software, material handling equipment, medical response aircraft, furniture and fixtures, vending equipment, railcars, marine equipment, construction equipment, medical equipment, computers and federal energy equipment. MMAF 2022-B will issue four classes of 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 approximately $1.067 billion, as of September 30, 2022 and based on the statistical discount rate of 7.75 percent. The ASV includes 241 Financed Units to 82 obligors. The average Financed Unit balance is approximately $4.4 million, and the average obligor exposure is approximately $13.0 million. The maximum obligor exposure is approximately $109.9 million or approximately 10.3 percent of the ASV.
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